On Tuesday, West Realm Shire Services Inc., the parent company of the FTX crypto exchange, announced that it had acquired Ledgerx, the Commodity Futures Trading Commission (CFTC) regulated futures exchange and clearing house for digital currencies.
FTX acquires the Ledgerx virtual currency futures and options exchange
Ledgerx was acquired by cryptocurrency giant FTX, according to an announcement released on August 31. Ledgerx is a popular crypto derivatives platform that has seen “over 10 million crypto options and swap contracts” since 2017. In addition, Ledgerx claims the derivatives platform “pioneered bitcoin mini-contracts that enable granular trading.”
FTX’s announcement on Tuesday stated that the “financial terms of the deal were not disclosed.” The acquisition is currently pending and is expected to be completed once the customary closing conditions have been met.
“This acquisition marks a significant milestone in our rapidly growing US business and is an important part of our strategy to bring regulated crypto derivatives to our US user base,” said Brett Harrison, President of FTX.US, during the announcement. Harrison added:
We believe that integrating our technological capabilities, product portfolio and large footprint with Ledgerx will enhance our ability to bring innovative products to all US cryptocurrency traders. We are excited about this step and are working with US regulators to ensure compliance with existing derivatives licensing regulations.
The announcement states that now that the two entities are merged, the crypto exchange can meet the needs of “retail and institutional traders alike”. In addition, FTX seeks to forge a strong relationship with US regulators, stressing that it would work “specifically with the CFTC”.
Zach Dexter, CEO and Co-Founder of Ledgerx, believes FTX will help build a strong relationship with US regulators.
“US crypto derivatives are an incredibly underserved market,” said Dexter. “We needed time and resources to become a regulated company within the framework of the existing framework. FTX.US believes that we share the view that US regulators are ready and willing to partner on innovative products and that it is the responsibility of the entire industry to step up and work with agencies like the CFTC, ”he said added the CEO of Ledgerx.
On Tuesday, FTX CEO Sam Bankman-Fried called on Twitter: “This is probably one of the most exciting announcements we’ve ever had.”
What do you think of FTX’s takeover of the Ledgerx crypto derivatives platform? Let us know what you think on this matter in the comments below.
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