FTX.US, an affiliate of cryptocurrency exchange FTX, is launching crypto derivatives, tokenized stock trading, and self-hosted wallet support for non-fungible token (NFT).
The move comes after the rollout of an NFT marketplace earlier in October. The new hub allows users to mint, hold, authenticate, and trade digital collectibles on the solana blockchain. FTX’s NFT platform also launched support for ethereum-based tokens, which account for the majority of ERC-721 collectibles.
The marketplace is exclusively available to US customers and allows users to transfer existing NFTs, as well as providing project creators with full control over the NFT’s life cycle.
– derivatives for US customers
– stocks on FTX US
– self-hosted wallet support for FTX NFTs https://t.co/RveUDajexh
— Brett Harrison (@Brett_FTXUS) December 28, 2021
FTX US’s NFT marketplace is a centralized, custodial exchange. Specifically, it applies know-your-customer (KYC) identity checks as its parent derivatives exchange itself. Non-fungible tokens traded on the platform also must be transferred to the marketplace to put them up for sale.
FTX.US kicked off these plans earlier in October when acquired Ledger Holdings Inc., parent company of a CFTC-regulated digital currency futures and options exchange. Ledger was then rebranded as FTX US Derivatives.
The move deepens FTX’s competition with rival exchanges like Binance and OKEx, who had already rolled out their own NFT offerings. The popular exchange also goes against NFT-focused platforms like the leading secondary marketplace OpenSea and Rarible, which have seen their daily trading volumes soar in recent months.
FTX deepens derivatives offering
Under the CFTC’s approvals, FTX US Derivatives operates as a Designated Contract Market (DCM), Swap Execution Facility (SEF), and a Derivatives Clearing Organization (DCO). The firm offers derivatives products to both institutional and retail investors, primarily physically-settled options and swaps contracts.
As a registered DCO, the newly-acquired LedgerX was authorized to provide its suite of clearing services with respect to swaps, futures and options on futures contracts traded on a designated contract market. More specifically, its Bitcoin options platform is not required to undertake monthly stress tests of its financial resources to ensure that it could withstand the default of its largest participant.
FTX CEO Sam Bankman-Fried also revealed that the exchange has obtained the membership status of the International Swaps and Derivatives Association.
“We’re excited to announce that FTX US is now a member of @ISDA. We are looking forward to working alongside ISDA and their CEO @ScottOMalia as we continue to build up crypto derivatives markets in the United States and globally,” he announced.
FTX has recently established its new headquarters in the Bahamas and secured licenses under new regulatory frameworks in the Bahamas and Gibraltar. The exchange’s valuation had risen to $25 billion after a $450 million funding round that included a clutch of heavyweights from traditional finance. With revenue surging more than tenfold this year, these millstones place FTX.COM in a prime position to grow into one of the world’s leading crypto exchanges.