FTX.US, the U.S.-based subsidiary of crypto exchange FTX, announced the acquisition of crypto derivatives exchange LedgerX.
What Happened: According to a press release on Tuesday, FTX.US said it has executed a sale and purchase agreement to acquire Ledger Holdings Inc., the parent company of LedgerX LLC.
LedgerX is a crypto futures and options exchange regulated by the Commodity Futures Trading Commission (CFTC).
Under the CFTC, LedgerX operates as a Designated Contract Market (DCM), Swap Execution Facility (SEF), and a Derivatives Clearing Organization (DCO).
This acquisition marks a significant milestone for our rapidly growing US business and is a key part of our strategy to bring regulated crypto derivatives to our US user base,” commented Brett Harrison, the president of FTX.US.
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“We believe it is incumbent upon the industry to be proactive and to seek out working relationships with regulatory groups like the CFTC to help shape the future of our industry."
FTX.US also stated that the acquisition will have no effect on LedgerX’s daily operations. However, FTX.US will be able to use the platform to provide its users with options and futures contracts on Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) to institutional and retail investors.
US crypto derivatives is an incredibly underserved market, and it took time and resources for us to become a regulated entity under the existing frameworks,” said CEO and Co-Founder of LedgerX Zach Dexter.
Over its four years of operations, LedgerX has cleared over 10 million crypto options and swap contracts in addition to pioneering the Bitcoin mini contracts that enable granular trading.
Price Action: At press time, FTX’s native crypto token FTX Token (CRYPTO: FTT) was trading at a price of $56.58 after gaining 10.18% over the past 24-hours.
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