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FTX US Derivatives operates a regulated cryptocurrency derivatives exchange for United States residents, offering retail and institutional access to trading in options, volatility products, and leveraged tokens. The business model generates revenue by charging variable transaction fees on completed trades while maintaining strict compliance with domestic financial regulations through its official registration with FinCEN. Despite sharing overlapping management with its international counterpart, the domestic exchange maintained a completely separate capital structure. Following the sudden collapse of its broader corporate network, the entity's parent company officially filed for Chapter 11 bankruptcy protection in November 2022. During this ongoing restructuring period, turnaround executive John J. Ray III assumed leadership to manage complex creditor proceedings. The specific entity was established in October 2021 when co-founders Sam Bankman-Fried and Gary Wang acquired and subsequently rebranded the existing digital asset platform LedgerX.
FTX US Derivatives has raised $400.0M across 1 funding round.
FTX US Derivatives has raised $400.0M in total across 1 funding round.
FTX US Derivatives has raised $400.0M across 1 funding round. Most recently, it raised $400.0M Series A in January 2022.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Jan 1, 2022 | $400M Series A | — | Andreessen Horowitz, Bailhe, Bond, FTX Ventures, Greenoaks Capital, Innogen Venture Capital, IVP, Menlo Ventures, Multicoin Capital, NEW Enterprise Associates, Paradigm, Pioneer Fund, Sequoia Capital, Serena Ventures, TET Ventures, Tiger Global Management, Wave Financial, White Loop Capital, Jehan CHU | Announced |
FTX US Derivatives has raised $400.0M in total across 1 funding round.
FTX US Derivatives's investors include Andreessen Horowitz, Bailhe, Bond, FTX Ventures, Greenoaks Capital, Innogen Venture Capital, IVP, Menlo Ventures, Multicoin Capital, New Enterprise Associates, Paradigm, Pioneer Fund.
# FTX US Derivatives: High-Level Overview
FTX US Derivatives is not primarily a technology company—it is a regulated cryptocurrency derivatives exchange and clearinghouse. Formerly known as LedgerX before its acquisition by FTX US in August 2021, FTX US Derivatives operates as a digital currency futures and options exchange regulated by the U.S. Commodity Futures Trading Commission (CFTC)[1]. The platform serves institutional investors by offering physical settlement of derivatives contracts, block trading services, and algorithmic trading opportunities for Bitcoin and Ether[1].
While FTX US Derivatives does employ technology infrastructure to operate its exchange and clearing services, its core business model is financial services—specifically, providing regulated access to cryptocurrency derivatives markets. The platform is notable for remaining operational despite FTX's November 2022 bankruptcy filing, as it was not included in the bankruptcy proceedings[1].
# Origin Story
FTX US Derivatives originated as LedgerX, an independent regulated derivatives platform. In August 2021, FTX US acquired LedgerX to expand its product offerings beyond spot trading into futures and options markets[2]. This acquisition was strategic: it allowed FTX US to offer institutional-grade derivatives products while maintaining CFTC registration as a designated contract market, derivatives clearing organization, and swap execution facility[1].
The acquisition reflected FTX's broader ambition to build a comprehensive cryptocurrency trading ecosystem. At the time, FTX was rapidly scaling—the company had raised $900 million in Series B funding by July 2021 and was valued at $32 billion by January 2022[2][5]. The LedgerX acquisition positioned FTX US to compete with international derivatives platforms while serving the U.S. institutional market.
# Core Differentiators
# Role in the Broader Tech Landscape
FTX US Derivatives operates within the institutional cryptocurrency derivatives market, a sector that has grown significantly as traditional financial institutions seek regulated exposure to digital assets. The platform's CFTC registration and clearinghouse model represent an attempt to bring traditional financial market infrastructure—such as centralized clearing and settlement—to cryptocurrency markets.
The timing of the LedgerX acquisition (2021) reflected broader industry momentum: institutional adoption of cryptocurrency was accelerating, and regulatory frameworks were beginning to mature. FTX positioned itself as a bridge between the crypto-native trading world and institutional finance, offering familiar compliance and regulatory standards[3].
However, FTX US Derivatives' trajectory was significantly altered by the parent company's collapse. While the derivatives platform itself survived the bankruptcy intact, the broader FTX ecosystem's implosion damaged confidence in the company and the industry more broadly.
# Quick Take & Future Outlook
FTX US Derivatives represents a specific market niche: regulated, institutional-grade cryptocurrency derivatives trading in the United States. Its survival through FTX's bankruptcy demonstrates the value of its regulatory licenses and operational independence, but its future remains uncertain given the reputational damage to the FTX brand and ongoing legal proceedings related to the parent company's fraud.
The platform's long-term viability will depend on whether it can rebuild institutional trust and compete effectively against other regulated derivatives platforms. The cryptocurrency derivatives market continues to mature, and regulatory clarity is increasing—factors that could benefit a fully compliant platform. However, the association with FTX's collapse presents a significant headwind that may require substantial rebranding or operational restructuring to overcome.
