TLDR
- Backpack crypto exchange plans to launch in multiple U.S. states later this year, pending license approvals.
- The platform focuses on transparency and trust, offering daily proof of reserve for users to verify their holdings.
- Backpack acquired FTX EU to help refund former customers and resolve ongoing investigations into the failed crypto exchange.
- The company aims to capture significant market share in the U.S., which remains its largest focus despite regulatory challenges.
- Backpack currently holds over $170 billion in assets, with Bitcoin and Ethereum leading its token distribution.
The Backpack crypto exchange platform plans to expand into multiple U.S. states later this year. The launch is contingent on finalizing license agreements. The company aims to offer a transparent and secure trading experience, focusing on building trust in the digital asset market. CEO Armani Ferrante emphasized that the U.S. market remains a top priority due to its size and significance.
Backpack Focuses on Transparency for U.S. Launch
Backpack was founded in 2022 with a primary focus on providing U.S. users with a self-custodial wallet. Initially, the company expanded into regions with more accessible regulatory frameworks, such as Dubai, Japan, and Europe. However, Ferrante confirmed that the company plans to enter the U.S. market soon, despite the regulatory hurdles.
Earlier this week, Backpack received approval from Cyprus to operate in the European Union. The company will offer perpetual futures trading under the MiFID II framework. Ferrante believes the U.S. market will be key to Backpack’s growth and expansion, given the country’s size and crypto adoption rate.
The decision to launch in the U.S. comes amidst ongoing debates over the regulatory environment for digital assets. While some critics argue that the current regulatory approach under the Biden administration has hindered the growth of U.S. crypto businesses, there are signs of change. Former President Trump’s administration had supported pro-crypto policies, which could boost the industry’s future in the country.
Ferrante’s approach to the U.S. launch will emphasize transparency and trust minimization.
“The lessons from FTX, where we lost funds after the fraud was exposed, inspired our focus,” said Ferrante.
He noted that many users only realize the importance of proof of reserve when it’s too late. Therefore, Backpack will publish daily proof of reserve reports to ensure users can verify their holdings in real time.
The platform’s commitment to transparency also stems from Ferrante’s belief that financial institutions must be verifiable at all times.
“Opaque systems have proven to be brittle and dangerous,” he stated.
Backpack aims to provide users with a level of security and transparency that is often lacking in the crypto space.
In addition to its efforts in the U.S., Backpack is working to resolve the aftermath of FTX’s collapse. The company acquired FTX EU in an attempt to salvage the remnants of the failed business. Backpack has committed to reimbursing former FTX customers, with a settlement of £200,000 to close investigations into FTX’s prior violations.
Backpack’s Growth Potential and U.S. Launch
Despite regulatory challenges, self-custodial wallets have remained largely unregulated in the U.S. Backpack has continued to operate in the country with its wallet services, which are primarily based there. Ferrante mentioned that most of the company’s employees are located in the U.S., reflecting the country’s importance to the platform.
Backpack currently holds over $170 billion in assets, with a 24-hour trading volume of $74.7 million. Bitcoin leads the platform’s token distribution with 46.03%, followed by Ethereum at 16.64%. Backpack also supports perpetual contracts on more than 40 trading pairs, offering up to 10x leverage to its users.
As Bitcoin price rose 1.8%, trading at $113,533.6, and Ethereum increased by 0.8%, trading at $4,344.65, Ferrante believes that the U.S. market will accelerate Backpack’s growth.
“The size of the market will allow us to capture a significant share quickly,” he said.
Backpack’s unique offering in self-custodial wallets and exchange services positions it well for success in the U.S. market.
