FTX.US capitalizes on derivatives and acquires LedgerX platform

FTX.US acquires LedgerX platform

For an undisclosed amount, the US subsidiary of the FTX platform, FTX.US, has just acquired LedgerX, a company specializing in crypto asset derivatives.

The deal is expected to close during October this year according to the official release, and would allow FTX.US to offer its US-based customers plethora of new crypto-currency related products. FTX International users can already use derivatives such as futures, but the US platform still doesn’t have that option.

This is because LedgerX is already regulated by the Commodity and Futures Trading Commission (CFTC), so FTX.US will have the option to use its license to offer novel services to its customers. To date, LedgerX offers futures, options and swaps on Bitcoin (BTC) and Ether (ETH).

Initially, LedgerX will maintain its independence and continue to offer its own services to its users. In the near future, LedgerX will be fully under the umbrella of FTX.US and the latter will then absorb all services offered by the newly acquired platform.

“We want to plant our flag in something that is our own,” said Brett Harrison, CEO of FTX.US. “FTX International has operated a platform with $500 billion in monthly derivatives volume for two years without experiencing any significant liquidations or downtime. We feel that this is clearly within our capabilities.”

Going further – FTX signs 7-year deal with Riot Games for League of Legends competitions

An important market for FTX.US

For FTX.US, this deal is proving to be particularly strategic, and should take the platform to new heights. The cryptocurrency derivatives market is booming and is particularly aimed at professional and institutional traders.

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During the month of July this year, data from The Block shows that nearly $816.5 billion was traded on the spot markets of cryptocurrency exchange platforms. For comparison, derivatives volume over the same period is the equivalent of $1.47 trillion.

These numbers speak for themselves, the derivatives market is of paramount importance to exchange platforms, and FTX is capitalizing heavily on it to ensure its future within the ecosystem.

Far behind Deribit, LedgerX alone handles nearly 4% of Bitcoin’s options volume. As for futures, LedgerX handles negligible volume, far from its main competitors licensed in the US like CME.

However, LedgerX is no longer going it alone, and FTX.US will certainly engage the big guns to attract new users to its constantly developing offering.

FTX and FTX.US are on their way to creating a true cryptocurrency industry empire, while the Sam Bankman-Fried-led group only just celebrated its 2 candles.

Moreover, this is not the first time an FTX group entity has acquired a third-party platform. In August 2020, FTX actually acquired portfolio tracking app Blockfolio for $150 million.

What will be the next company to join the FTX group? The answer will certainly be in a few months…

Related news – FTX raises $900 million for a valuation of $18 billion

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About the author: Clement Wardzala

FTX.US capitalizes on derivatives and acquires LedgerX platform

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Editor-in-Chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I’ve been striving to share qualitative content so that the sector can be democratized to everyone.
All articles by Clement Wardzala.