FTX US Considers Launching Crypto Derivatives After LedgerX Acquisition

FTX US considers launching a crypto derivatives platform as it is set to acquire derivatives exchange LedgerX and bring ETH and BTC futures to the US customers as we are reading more in our latest crypto news.

The FTX US crypto exchange announced that it will acquire LedgerX which is a crypto derivatives trading platform regulated by the CFTC. The terms of the deal are expected to be completed by October this year but they haven’t been disclosed yet and it will have no impact on the LedgerX operations as the exchange considers continuing its offerings to the existing customer base. Provided the acquisition is closed, FTX US will become able to offer BTC and ETH options and futures contracts for retail and institutional traders that leverage LedgerX’s relationship with CFTC.

Most of the financial products offered by FTX like derivatives are now available to teh US investors. Sam Bankman Fried the CEO of FTX commented:

“This is probably one of the most exciting announcements we’ve ever had.”

Crypto derivatives products like BTC future allow investors to buy or sell digital assets at a pre-established price without the need to hold the underlying asset. They offer investors a way to bet on the prices of crypto as well as to hedge against the volatility of the assets. Other popular crypto derivatives include options and perpetual contracts that contract that allow investors to buy and sell assets at a predetermined date for a specific price.

1) This is probably one of the most exciting announcements we’ve ever had.@ftx_us + @ledgerxhttps://t.co/nQmk2mx3i1

— SBF (@SBF_FTX) August 31, 2021

In an interview earlier this month, Brett Harrison the FTX US president confirmed that the exchange was working on adding crypto derivatives trading to the platform and considered two avenues to achieve it like applying for its own license or acquire a new business that already has a license. FTX US only supports spot trading for selected cryptos like BTC, Litecoin, Tether, and Ether. The platform also stressed that it will be “devoting significant resources towards developing a strong working relationship with the U.S. regulatory community, specifically with the CFTC,” with the ultimate goal of meeting “the rigorous standards of the U.S. financial services industry.”

Bankman Fried added:

“Common ground between regulators and industry is the foundation of safe, sustainable innovation.”

The CFTC moved to clarify its regulatory role in the US and outlined that it only monitors instruments like swaps, futures, and other derivatives based on commodities. The agency said that it will not regulate commodities traded on cash markets like natural gas but it will regulate the derivatives based on these commodities.

Source: https://www.dcforecasts.com/altcoin-news/ftx-us-considers-launching-crypto-derivatives-after-ledgerx-acquisition/