As per a press release on Tuesday, the news came to the surface that FTX.US, a crypto exchange, has executed a sale and purchase agreement with Ledger Holdings Inc. Ledger Holdings Inc. is the parent company for the LedgerX LLC.
Ledger X is a crypto exchange for futures and options. It gets regulated through the Commodity Futures Trading Commission.
Under the CFTC, LedgerX tends to operate in the form of a Designated Contract Market, Derivative Clearing Organization, and Swap Execution facility.
This acquisition is a milestone for the fast-growing US business. Also, it is a key part of the strategy of FTX.US to regulate crypto derivatives. It will ultimately help their US user base.
He said, “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 said that this acquisition would have an impact on the daily operators of LedgerX. FTX.US can use this platform to offer their users options and futures contracts on cryptos like Bitcoin, Ethereum.
The market of US crypto derivatives has been an undeserved one. It took much time and resources for them to become a regulated entity, as LedgerX CEO Zach Dexters says.
Here is what he exactly said, “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.”
Over the four years of operating LedgerX, he made its clearance over 10 million crypto options with swap contracts. At the same time, they have pioneered the Bitcoin mining contract, which has enabled granular trading.
Now it is about to see how this tie-up will perform to give the uses of both the firms ultimate benefits with crypto trading. Also, most possibly, it will pave the way for FTX.US’s entry much smoother in the derivative market.