Backpack Cryptocurrency Exchange Set to Launch in the U.S.
Backpack, a cryptocurrency exchange founded by former employees of the now-defunct FTX, is on track to launch its trading operations in the United States later this year. CEO Armani Ferrante revealed that the firm plans to initiate its services with spot trading accessible in multiple states. This development follows the company’s recent efforts to make a mark in markets like Japan and the European Union, where it has been actively seeking the necessary licenses for money transmission operations.
Importance of the U.S. Market
Speaking from Japan, Ferrante emphasized the importance of the U.S. market, stating,
“It has always been a priority for us,”
underscoring his personal connection to the region as a California native. He further explained,
“It’s the biggest market and the one I understand best.”
Strategic Focus and Global Operations
Although Backpack has offered its self-custodial wallet in the United States since its inception in 2022, the firm strategically concentrated on markets such as Dubai for its burgeoning trading platform. In Europe, Backpack has registered its operations in Cyprus and recently rolled out perpetual futures offerings, compliant with the MiFID II regulatory framework, particularly after acquiring FTX EU earlier this year to reclaim parts of the fallen crypto venture led by Sam Bankman-Fried.
Commitment to Transparency and Trust
Ferrante believes that Backpack’s commitment to ‘trust minimization’ will set it apart in the competitive U.S. landscape. The company provides daily updates on its reserve holdings, presenting a transparent method of verifying its stability to users who may take such assurances for granted until issues arise. This policy stems from the lessons learned from the FTX collapse, where Ferrante experienced significant losses due to fraudulent activities.
He stated,
“We must make financial systems transparent, verifiable, and privacy-preserving not over extended timelines but in real-time, ideally within seconds or minutes.”
This approach is increasingly urgent, considering the vulnerabilities in existing financial paradigms.
Regulatory Challenges and Future Prospects
As the climate of regulatory enforcement under the Biden administration has pushed many innovation-driven jobs overseas, SEC Chair Paul Atkins recently criticized this tactic as ineffective at a roundtable discussion in France, pointing out the detrimental effects on the U.S. economy.
Despite the challenging regulatory landscape, Ferrante maintains that Backpack never truly exited the U.S. market. The company boasts a larger employee base in the U.S. than anywhere else, and U.S.-based users of their wallets are also a primary demographic.
Ferrante reflected on Backpack’s unique positioning as a dual-product company, stating,
“We’re a bit of a weird example because we have two products.”
Looking ahead, he expressed optimism about Backpack’s prospects, noting that their exchange has already processed $170 billion in trading volume since 2024, and entering the U.S. market could rapidly accelerate that figure.
“It’s the market where we can gain the most share in the shortest amount of time,”
he concluded, highlighting the personal ties he maintains in the region.
