US-based cryptocurrency exchange FTX.US has acquired Ledger Holdings Inc, the parent company of digital currency futures & options exchange and clearinghouse LedgerX.
FTX.US’s acquisition of the Commodity Futures Trading Commission (CFTC) registered exchange is expected to close soon, subject to customary closing conditions, and will result in the creation of a combined entity with the purpose of creating products to meet the needs of both retail and institutional traders.
The merged company will also commit ‘significant resources’ to the development of a ‘strong working relationship’ with the US regulatory community, in particular the CFTC, whilst FTX.US hopes to further drive innovation in compliance with standards of the American financial services industry.
“This acquisition marks a significant milestone for our rapidly growing US business and is a key part of our strategy to bring regulated crypto derivatives to our US user base,” said Brett Harrison, President of FTX.US.
“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.
“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.”
The acquisition builds on the upward momentum of FTX.US this year, most notably coming to an agreement with Tom Brady of the National Football League (NFL), with the quarterback gaining an equity stake in the exchange in return for serving as a brand ambassador.
LedgerX’s takeover by FTX.US will have ‘no material impact’ on its current offerings to its existing customer base. The firm currently provides physical settlement of contracts, block trading and algorithmic trading opportunities for institutional investors.
Zach Dexter, CEO and Co-Founder of LedgerX, added, “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.”