FTX CEO states bringing derivatives to the U.S has been a big ask.
Sam Bankman-Fried or SBF as some know him has been very busy recently. The CEO has had his hands full bailing out crypto lenders that have been struggling financially. The young billionaire spends the rest of his time working on FTX US Derivatives- formerly LedgerX.
FTX is a derivatives exchange that began in 2019. Currently the platform offers more in the form of NFTs, credit and debit cards, payments processing and, OTC trading. The company has had to set up separate companies just to work in the U.S market.
FTX finalized the acquisition of Ledger Holding back in October of 2021. The amount of the purchase remains unknown. The purchase opened the door for the company to obtain Bitcoin and Ethereum derivatives and be able to sell them to clients in the United States. A derivative is a contractual agreement to buy or sell an asset based on future prices.Currently the CFTC-the Crypto Federal Trade Commission, has allowed several crypto companies the ability to offer crypto derivatives.
Other competitor projects include Coinbase Derivatives Exchange and North American Derivatives Exchange (Nadex) which is not a full offering of derivatives, the Coinbase BIT futures will only be available on a third party platform until a futures commission merchant license is approved. Nadex was created by Singapore-based Crypto.com.
SBF believes this move was one of the biggest and most important moves of the company. He states that focusing on FTX US Derivatives is very important in that it is the single most thing he is paying attention to now. Sam wants to bring the same level of liquidity and market access to the states that other countries have been enjoying.
Back in August of 2021 the CEO tweeted that he believed this announcement to be the most exciting ever for the company as many clients have been asking for this since the inception of the company. Sam Bankman Fried might be putting a lot of energy into saving some failed crypto companies but there is nothing more important to him than bringing these new derivatives to his loyal clientele.