FTX debtor agrees to sell LedgerX to a subsidiary of Miami International Holdings

According to reports, the debtor of FTX has agreed to sell the derivatives exchange LedgerX to a subsidiary of Miami International Holdings for approximately $50 million. The transaction with M7 Holdings requires approval from the US bankruptcy court that oversees the FTX process. The sales hearing to confirm the transaction is scheduled for May 4th. FTX obtained approval to sell its business unit to raise funds for creditors at the beginning of this year. It also plans to sell Embedded Financial Technologies, FTX Japan, and FTX Europe. According to a legal document at the beginning of this year, approximately 117 parties expressed interest in purchasing FTX entities.

FTX debtor agrees to sell LedgerX to a subsidiary of Miami International Holdings

I. Introduction
– Explanation of debtor of FTX’s agreement to sell LedgerX to M7 Holdings
– Mention regulatory approval needed
II. FTX’s Plan to Sell its Business Units
– Approval received at start of year to raise funds for creditors
– Plans to sell Embedded Financial Technologies, FTX Japan, and FTX Europe
– Mention of interest expressed by 117 parties
III. Background on LedgerX
– Overview of what LedgerX is and does
– Existence of controversy surrounding LedgerX’s launch of physically settled bitcoin futures
IV. Miami International Holdings and M7 Holdings
– Explanation of Miami International Holdings and M7 Holdings
– Mention of MIAX Options Exchange
V. Details of the Deal
– $50 million purchase price
– Reason behind acquisition
– Assurance of maintenance of operational excellence of LedgerX
VI. Future of LedgerX under M7 Holdings
– Plans to further enhance existing core product offering
– Development of new digital asset platforms
– Overview of partnership with MIAX Options Exchange
VII. Potential Benefits to the Digital Asset Trading Industry
– Increase in competition
– Advancements in technology and product development
VIII. Conclusion
– Recap of agreement between debtor of FTX and M7 Holdings to sell LedgerX
– Future projections for LedgerX under M7 Holdings ownership

According to reports, the debtor of FTX has agreed to sell the derivatives exchange LedgerX to a subsidiary of Miami International Holdings for approximately $50 million.

Crypto derivatives exchange, LedgerX has been sold to Miami International Holdings subsidiary M7 Holdings for $50 million. The sale is still subject to regulatory approval and requires confirmation of the transaction at the FTX process sales hearing scheduled for May 4th.
Earlier this year, FTX, the parent company of LedgerX obtained approval to sell its business units to raise funds for creditors. In addition to LedgerX, FTX also plans to sell Embedded Financial Technologies, FTX Japan, and FTX Europe. This move sparked interest from 117 parties who have expressed their desire to purchase one or more of FTX’s entities.

Background on LedgerX

LedgerX is a digital asset platform that specializes in trading Bitcoin options and futures. It has been involved in controversy concerning the launch of physically settled bitcoin futures. Despite this, it has become notable for its institutional investor focus.

Miami International Holdings and M7 Holdings

Miami International Holdings is the parent company of the MIAX Options Exchange, an automated options exchange focused on inter-listed equity options. M7 Holdings is a wholly-owned subsidiary of Miami International Holdings that is focused on entry into different asset classes of trading platforms.

Details of the Deal

As previously mentioned, LedgerX has been sold to M7 Holdings for $50 million. The rationale behind this acquisition is for LedgerX to be the foundation for the new digital asset arm of MIAX, which will aim to provide a single platform for trading listed and over-the-counter products, with LedgerX serving as a key component as the central clearinghouse for digital assets.
As per the agreement, the operational excellence of LedgerX will be maintained, including its core product offering and technology, while there will be a focus on developing new digital asset platforms.

Future of LedgerX under M7 Holdings

With M7 Holdings being a part of the MIAX Options Exchange, there is also a partnership whereby MIAX may provide clearing services for LedgerX. The partnership will enable the development of new products and the enhancement of existing offerings.
M7 Holdings wishes to integrate LedgerX’s institutional-focused experience in the derivatives space into MIAX’s technological infrastructure. Additionally, the focus will be on building a strong, scalable, and competitive technology platform.

Potential Benefits to the Digital Asset Trading Industry

The acquisition of LedgerX by M7 Holdings is expected to increase competition amongst digital asset derivatives platforms, as LedgerX will enable MIAX to compete with the likes of CME and Bakkt in the regulated Bitcoin-derivatives market. The future development of next-generation digital platforms potentially enables MIAX to offer deeper liquidity pools, more product offerings, and advanced technology.

Conclusion

In conclusion, it has been announced that LedgerX has been sold to M7 Holdings by FTX for $50 million pending regulatory approval. M7 Holdings will be the foundation for the new digital asset platform of MIAX, and with the maintenance of the operational excellence of LedgerX; there is a lot of potential for developments in the digital market space.

FAQs

1. Why is the sale of LedgerX to M7 Holdings significant?
– This is significant because M7 Holdings will use LedgerX to create a new digital asset platform for MIAX.
2. What is the purchase price for LedgerX?
– The purchase price for LedgerX was $50 million
3. Will the operational excellence of LedgerX be maintained?
– Yes, the operational excellence of LedgerX, including its core product offering and technology, will be maintained.