Cryptocurrency exchange FTX.US has agreed to acquire LedgerX, a digital currency futures and options exchange and clearinghouse.
The deal, for an undisclosed sum, will see FTX.US move into regulated crypto derivatives in the US.
LedgerX is a US Commodity Futures Trading Commission (CFTC)-regulated designated contract market, swap execution facility and derivatives clearing organisation.
It serves both retail and institutional investors, while also offering physical settlement of all contracts, block trading and algorithmic trading opportunities for this latter group of customers.
Since its launch in 2017, LedgerX has cleared more than 10 million crypto options and swap contracts, according to FTX.US.
Brett Harrison, president of FTX.US, comments: “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 US cryptocurrency traders.”
Harrison adds: “We’re excited to take this step and work with US regulators to ensure compliance with the existing derivatives licensing regime. 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.”
Zach Dexter, chief executive officer and co-founder of LedgerX, comments: “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. FTX.US has taken the view, which we share, that US 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.”