FTX.US to open up crypto derivatives trading to clients
US bitcoin exchange subsidiary FTX intends to allow customers to trade cryptocurrency derivatives by the end of 2021. FTX.US president Brett Harrison told Decrypt.
Users of the FTX International Exchange can trade on the spot market as well as trade crypto derivatives. Derivatives transactions contribute significantly to the company's overall revenue mix - its share of the bitcoin futures market has almost doubled from 9% to 16% since late June.
Compared to its parent organisation, the FTX.US platform offers clients a modest set of features for spot trading. The limitations are due to strict US laws.
"There are a number of challenges associated with launching such a business. The main one is CFTC approval and support, so an exact timeline [for launch] is difficult to estimate," Harrison explained.
According to the platform's president, FTX.US has two ways to get regulatory approval: to apply to the Commission for its own licence or to acquire a company that already has the relevant approval.
FTX launched its US division in May 2020. Initially, users of the platform could trade six crypto-assets - bitcoin, Ethereum, Bitcoin Cash, Litecoin, Paxos Gold and Tether. That list has now been expanded.
In July, the head of the company, Sam Bankman-Fried, told CoinDesk that he sees huge growth potential for FTX.US. He said this is largely due to the lack of a large number of strong competitors in the US market.
Recall that FTX raised an industry record $900m in a Series B funding round in July, with investors valuing the company at $18bn.