On Tuesday, West Realm Shire Services Inc., the parent company
of the crypto exchange FTX, announced that the firm has acquired the
Commodity Futures Trading Commission (CFTC) regulated digital currency
futures and options exchange and clearinghouse Ledgerx.
FTX Acquires Virtual Currency Futures and Options Exchange Ledgerx
Ledgerx has been acquired by the cryptocurrency giant FTX,
according to an announcement published on August 31. Ledgerx is a
popular crypto derivatives platform that has seen “over 10 million
crypto options and swap contracts” since 2017. Furthermore, Ledgerx
claims the derivatives platform “pioneered the bitcoin mini contracts
that enable granular trading.”
The announcement from FTX on Tuesday details that the “financial
terms of the deal have not been disclosed.” The acquisition is pending
at the moment and is expected to settle after customary closing
conditions are satisfied.
“This acquisition marks a significant milestone for our rapidly
growing U.S. business and is a key part of our strategy to bring
regulated crypto derivatives to our U.S. user base,” Brett Harrison, the
president of FTX.US said during the announcement. Harrison added:
We believe the integration of our technological
capabilities, product portfolio and large balance sheet with Ledgerx
will enhance our ability to provide innovative products to all U.S.
cryptocurrency traders. We’re excited to take this step and work with
U.S. regulators to ensure compliance with the existing derivatives
licensing regime.
The announcement says that now that the two entities are combined,
the crypto exchange can meet the needs of “retail and institutional
traders alike.” Moreover, FTX aims to build a strong relationship with
U.S. regulators and emphasized that it would work “specifically with the
CFTC.”
Zach Dexter, the CEO and co-founder of Ledgerx believes that FTX will help forge a strong relationship with U.S. regulators.
“U.S. crypto derivatives is an incredibly underserved market,” Dexter
said. “It took time and resources for us to become a regulated entity
under the existing frameworks. FTX.US has taken the view, which we
share, that U.S. regulators are ready and willing to partner on
innovative products, and it’s the responsibility of the industry as a
whole to step up and work with agencies like the CFTC,” the Ledgerx CEO
added.
On Tuesday, the CEO of FTX Sam Bankman-Fried said on Twitter that “This is probably one of the most exciting announcements we’ve ever had.”
source link : https://news.bitcoin.com/digital-currency-firm-ftx-acquires-crypto-derivatives-platform-ledgerx/
