LedgerX Ditches Silvergate, Chooses Signature Bank For Seamless US Transfers
- FTX’s crypto derivatives unit, LedgerX, partnered with Signature Bank to provide trading services to institutional clients, replacing its partnership with Silvergate.
- This partnership allows Signature Bank to expand its crypto offerings, including access to LedgerX’s trading platform.
- The partnership aims to provide a streamlined trading experience for institutional investors interested in crypto derivatives.
- Late last year, Signature Bank announced it would reduce its exposure to crypto companies but did not end it entirely during the market meltdown.
In an email sent to a customer by FTX’s LedgerX derivatives trading platform, the company will no longer use Silvergate Bank to receive domestic bank transfers in the US and has established a new partnership with Signature Bank, according to Bloomberg.
Since the collapse of FTX, Silvergate Bank has suffered all kinds of losses, including losses, layoffs, and regulatory pressure. Silvergate has been embroiled in lawsuits for allegedly aiding and abetting the money laundering transactions of FTX and Alameda. In addition, more and more clues indicate that Silvergate played some role in money laundering transactions of crypto institutions in recent days.
The partnership aims to provide a streamlined trading experience for institutional investors interested in crypto derivatives. It also allows Signature Bank to expand its crypto offerings, including access to LedgerX’s trading platform.
While Signature Bank could not comment on specific clients, the company said it remains in the business of holding deposits with digital assets.
The bank revealed in December that it is reducing its exposure to the industry, but only partially. It is known that FTX and related organizations have accounts at Silvergate and Signature. Since FTX’s bankruptcy, these companies have regularly faced increasing scrutiny from lawmakers.
FTX US, the US subsidiary of FTX, completed its acquisition of LedgerX in October 2021, more than a year before the crypto exchange went bust.
LedgerX is registered with the US Commodity Futures Trading Commission and is a crucial part of FTX co-founder Sam Bankman-Fried’s drive to gain power and influence in Washington.
The platform previously sought approval from the CFTC to remove crypto derivatives transactions without intermediaries but withdrew the controversial application after the collapse of FTX.
Since filing FTX for bankruptcy in November, LedgerX has held approximately $303 million in cash and is one of the few insolvent subsidiaries in FTX’s bankruptcy proceedings.
The initial bid for LedgerX is due on January 25, and an auction will be held on March 7. Bidders have not been disclosed, but crypto players like Blockchain.com, Gemini, and Kalshi are said to be interested in bidding.
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