LedgerX Acquisition is a Game Changer for FTX and Sam Bankman-Fried

The name Sam Bankman-Fried is becoming more and more common in the world of cryptocurrency by the day. Known as the “Steve Jobs of crypto,” this 29-year old visionary and crypto billionaire took the DeFi world by storm when he established the crypto derivatives exchange FTX in Hong Kong back in 2017. “Built for traders by traders,” FTX is a major challenger to Coinbase and Ethereum, and its American arm FTX.US is working to bring Bitcoin options and cryptocurrency derivatives trading to the US — something that a new announcement has now revealed to be closer than ever. 

The U.S affiliate of FTX, FTX.US, announced just days ago that they would be acquiring LedgerX, a derivatives exchange, and clearinghouse that holds several key licenses from the Commodity Futures Trading Commission (CFTC). LedgerX has what is known as derivatives clearing organization license, which allows it to host complex contracts on its platforms such as block trading and algorithmic trading opportunities for institutional investors. This acquisition will now allow FTX.US to offer options and futures contracts on Bitcoin and Ethereum to their clients, both small-scale and institutional. 

These derivatives are tradable contracts that allow investors to bet on whether the price of an asset will rise or fall, without requiring them to own the underlying asset. This acquisition is set to give FTX.US a large foothold in the US market, allowing it to exercise its existing expertise in the world of derivatives trading in the US market. Bankman-Fried has routinely stressed that regulators and exchanges are to be “allies rather than enemies,” a far cry from the current stand-offs that have taken place over the past few years. 

Also noteworthy is the fact that FTX.US had recently hired the former lead counsel for the Commodities Futures Trading Commission, Ryne Miller as its general counsel. Miller was hired by the firm “to ensure FTX.US remains responsive to and compliant with, emerging U.S. and global regulatory policies,” something he appears to be doing well thus far. FTX has also made large strides in the world of sports, going so far as to sponsor Major League Baseball (MLB), becoming the first cryptocurrency exchange to sponsor a professional US sport, and acquiring naming rights to the Miami Heat arena, henceforth known as FTX Arena. 

In an interview with Business Insider, Bankman-Fried spoke on his wishes of crypto becoming more widely accepted by regulators saying, “I just wish that the industry were, as a whole, doing a more conscientious job of interfacing with regulators [and showing] that they don’t need to have overly paternalistic regulations”. 

What FTX is doing at this point is a game-changer: Resolving problems associated with a deeply fragmented market, consolidating industry share of voice through acquisitions, and allowing crypto traders and institutions to arbitrage futures against markets in one place. 

For more on FTX and their partnerships, check this video out:
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