OKX is mulling a potential bid for LedgerX, a Miami-headquartered derivatives unit of collapsed crypto exchange FTX, according to a source familiar with the situation.
Crypto exchange OKX has been holding internal discussions over whether to bid for LedgerX, the source said. It is evaluating tabling up and submitting an offer soon, he said without elaborating.
Seychelles-headquartered OKX has more than USD 1bn in daily trading volumes and ranks among the world’s top 10 spot crypto exchanges, according to price-tracking website CoinMarketCap.
The company considers LedgerX to be an attractive asset, as it holds a string of licences to operate in the US crypto derivatives market, according to the source.
LedgerX is regulated by the US Commodities and Futures Trading Commission (CFTC) to offer crypto options, futures, and swaps to US retail and institutional investors. It holds three licenses: designated contract market (DCM), swap execution facility (SEF), and derivatives clearing organization (DCO).
An auction process of LedgerX will take place on 4 April followed by a sale hearing on 12 April, as per a media report.
LedgerX has garnered bids from New York-based events trading platform Kalshi Inc and Miami International Securities Exchange (MIAX), according to a media report on 21 March. MIAX’s parent company Miami International Holdings had invested in LedgerX, according to LedgerX’s website.
Other interested buyers previously cited include Gemini Trust Company, Blockchain.com and Bitpanda, as reported in December 2022.
Earlier this January, FTX was cleared by a bankruptcy judge to put LedgerX on the market, in a sale process handled by investment bank Perella Weinberg, as reported. Other assets up for sale by FTX, which filed for bankruptcy in November 2022, include stock-clearing platform Embed Financial Technologies, FTX Japan Holdings, and FTX Europe.
FTX had acquired LedgerX in October 2021 for an undisclosed sum and rebranded the company to FTX US Derivatives, as announced. LedgerX is reportedly one of the few solvent assets left from Sam Bankman-Fried’s former empire, with about USD 303m in cash as of a 17 November 2022 filing.
Launched in 2014, LedgerX has seen over 120,000 bitcoin and USD 1.1bn traded in notional value on its exchange since launch, according to its website.
OKX and LedgerX did not respond to requests seeking comment.