【Observation】Long-anticipated move? FTX to launch spot trading platform FTX.US in the U.S. in May

FTX has always positioned itself as a cryptocurrency derivatives exchange focusing on the Asian market since its launch. However, FTX CEO Sam Bankman-Fried confirmed to the media yesterday that FTX will be launching a spot trading platform in the United States – FTX.US. The platform is currently undergoing beta testing and is scheduled to be officially launched in early May.

FTX Enters the U.S. Market

According to the FTX.US website, the new exchange has obtained a Money Services Business (MSB) license issued by the Financial Crimes Enforcement Network (FinCEN), allowing it to legally provide services such as international money transfers, foreign exchange, currency trading/transfers (including digital currency/virtual currency), ICO issuance, prepaid access, and issuing traveler's checks. Additionally, the exchange is currently working on obtaining state-level Money Transmitter Licenses (MTL) from multiple states.

Cryptocurrency financial service providers must hold both MSB and MTL licenses to operate legally in the U.S. To offer services to users in New York, an additional BitLicense issued by the New York State Department of Financial Services (NYDFS) is required.

FTX.US will operate independently from FTX and maintain a separate order book. Currently, FTX.US Beta lists 6 USD trading pairs, including BTC, BCH, ETH, LTC, PAXG, and USDT. Sam Bankman-Fried stated that they aim to add more tradable assets, fiat-settled options products, and margin trading features for eligible investors before the official launch of the new exchange.

Targeting Large Traders and Institutional Investors

Observing the fee structure provided on the FTX.US website, it is evident that FTX.US charges significantly higher fees compared to FTX, especially impacting retail investors, with maker fees at lower tiers differing by 5 times. However, the fee standards for large traders have not changed much. In other words, the launch of FTX.US is largely a strategic decision to target the U.S. institutional market.

On the other hand, while FTX's performance in the spot trading market is not particularly outstanding compared to other exchanges, launching a spot trading platform in the U.S. suggests that this decision under FTX is likely to accumulate trust from regulatory bodies early on, enabling a seamless transition into a compliant derivatives trading platform in the future.

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