FTX.US Aims to Offer Crypto Derivatives Trading in Less than a Year & Hoping to Grow its Retail Base
Rapidly growing cryptocurrency exchange FTX is all set to gain ground in the US. Besides inking several significant partnerships, FTX.US is now aiming to offer crypto derivatives trading in less than a year.
Launched in 2020, FTX.US is an affiliate of the world’s second-largest crypto exchange FTX, founded by CEO Sam Bankman-Fried and offers both spot and derivatives platforms.
Currently, FTX.US only allows spot trading in compliance with the regulatory frameworks in the US and offers a limited range of offerings compared to its international counterpart. But now, they are hoping to bring derivatives to their US customers soon. In an interview with Market Insider, FTX.US president Brett Harrison said,
“We definitely hope to be able to offer them inside of a year.”
“Quite frankly, we could have or should have started a long time ago, but we're definitely interested in going through the process and collaborating with the CFTC to be able to offer those products in the US.”
This could be achieved through two routes that involve applying for a license from scratch or acquiring a firm. The exchange is exploring both possibilities though declined to disclose more information about any potential acquisitions. Harrison told Insider,
“We fully intend to go through in one form or another, so that we could eventually become a licensed derivatives exchange.”
“The ability to trade crypto derivatives on an exchange like FTX.US is an enormous source of potential for us as a business.”
Last month, Bankman-Fried had also said that the US has “an enormous amount of potential growth.” The same month, FTX raised $900 million in series B financing with a valuation of $18 billion, the majority of which Bankamn-Fried said will be used for expansion and acquisition.
Recently, during the announcement of Ryne Miller as its General Counsel, FTX.US described itself as a regulated crypto exchange that aims to “become the market leading US cryptocurrency exchange by volume over the next two years.”
Harrison is optimistic of the company's plans to offer crypto derivatives in the US, pointing to the regulated CME Group, which offers Bitcoin and Ether futures and options and recently also launched micro bitcoin futures.
FTX.US, whose 70% of trading volume comes from institutions, further aims to grow its retail base. Harrison said,
“We want our product to be a product for everyone.”
“I think that there's plenty of room in this space to have investors who are more casual investors.”
This move is unlike Coinbase, which is expanding its institutional base, and now accounts for 69% of its volume. However, it accounts for less than 6% of their $1.93 billion revenue.