The cryptocurrency industry has witnessed a major uptick recently, with MIAX, a well-known company in financial exchanges, acquires LedgerX. This transaction is of significant importance in the ever-changing landscape of crypto and derivatives markets. To better understand this strategic alliance, let’s dive into the details of the agreement.
LedgerX, a regulated exchange platform by the United States Commodity Futures Trading Commission (CFTC), was acquired by MIAX, owner of several entities within financial exchanges. The operation took place within the framework of the bankruptcy proceedings of FTX, the famous crypto exchange platform. As FTX sought to refocus its US business, MIAX’s acquisition of LedgerX emerged as a strategic opportunity.
LedgerX is a CFTC-regulated exchange and clearinghouse, registered as a Designated Contract Market (DCM), Derivatives Clearing Organization (DCO) and Swap Execution Facility (SEF). Since its foundation in 2014, LedgerX has positioned itself as one of the first players in the crypto options market. However, the company has struggled to handle large volumes despite being registered with the CFTC.
On the other hand, MIAX is the owner of various entities in the financial exchange industry, including Miami International Securities Exchange (MIAX), MIAX Pearl and MIAX Emerald. These exchanges are registered with the United States Securities and Exchange Commission (SEC) and are characterized by their high-performance proprietary technology. MIAX also operates the Bermuda Stock Exchange and the Minneapolis Grain Exchange. The acquisition of LedgerX is part of MIAX’s growth strategy aimed at bringing new innovative products to the industry.
“The acquisition of LedgerX represents an important part of our growth strategy, expanding our ability to bring innovative new products to the swaps and futures industry”
“We are pleased to complete this acquisition…while pursuing our strategy of operating regulated capital markets in the United States and internationally.”
Thomas Gallagher, Chairman and CEO of Miami International Holdings, Inc., the parent company of MIAX
MIAX’s acquisition of LedgerX strengthens the latter’s position as a key player in the crypto and derivatives sector. By integrating LedgerX into its portfolio of regulated entities, MIAX is expanding its ability to offer innovative products and diversified to investors. This acquisition opens up new opportunities for traders and users of the crypto derivatives market, thereby strengthening the competitiveness and liquidity of the sector.
MIAX’s acquisition of LedgerX marks an important turning point in the cryptocurrency and derivatives industry. Combining LedgerX’s expertise in crypto opportunities and MIAX’s strong infrastructure, this acquisition promises to bring significant advancements to the ecosystem.