FTX CEO Sam Bankman-Fried Backs US Crypto Derivatives

FTX CEO Reveals $1 Billion Availability For Acquisitions
  • First launched in 2019 as a derivatives exchange, FTX has since branched out.
  • The cryptocurrency exchange completed the purchase of Ledger Holding in 2021.

FTX CEO Sam Bankman-Fried insists that his focus remains on LedgerX (now rebranded as FTX US Derivatives). In October 2021, the cryptocurrency exchange completed the purchase of Ledger Holding, the parent firm of CFTC-licensed crypto trading platform LedgerX. The acquisition provided the firm with a mechanism for offering Bitcoin and Ethereum derivatives to clients in the United States.

The CEO stated:

“I continue to think that was one of the most important things that we did, and that it was super high upside, and it remains probably the single thing that I’m paying the most attention to right now. I think it’s incredibly important for the future of the ecosystem, and for our company, that we can bring the same level of liquidity and market access to the United States that people have had internationally.”

Potential Derivatives Market

A derivative is a futures contract that specifies the purchase or sale of an underlying asset at a predetermined price. While the U.S. Securities and Exchange Commission (SEC) is still trying to figure out whether crypto assets are securities, the Commodity Futures Trading Commission (CFTC) has enabled a number of organizations, both crypto industry veterans and newcomers, to provide crypto derivatives to investors.

Bankman-Fried called the acquisition “one of the most exciting announcements we’ve ever had” when it was revealed in August. First launched in 2019 as a derivatives exchange, FTX has since branched out to offer NFTs, credit/debit cards, payment processing, and OTC. Similar to rival exchange Binance, FTX has established a second entity, FTX US, to serve customers in the United States.

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A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.