Backpack Exchange announced plans to launch services in some U.S. states this year, starting with spot trading, according to CEO Armani Ferrante. The move could increase competition among regulated platforms and affects retail and institutional users who value compliance and clarity. The entry raises questions because of the founders’ past.
U.S. launch, context and implications
With its main office in Dubai and founded by former FTX employees, Backpack plans to begin business in multiple U.S. states during the year with a focus on the spot market, according to news reports. The announcement matters due to access to the North American market and the reputational history linked to FTX. Its success will depend on regulatory reception and whether users trust it.
Entry into the United States will require handling state and federal compliance rules. The exchange will compete with established platforms such as Coinbase within the U.S., and with Binance or Bybit in total volume according to the cited reports. The founders’ past adds a reputational element the company will need to manage publicly, and technical clarity can lessen uncertainty, though it does not remove all trust risks.
European positioning and FTX EU process
The firm has strengthened its regulatory position in Europe after it got FTX EU and received a MiFID II license in Cyprus. The license lets it offer regulated derivatives such as perpetual futures in the EU, according to Yahoo Finance. Backpack also took on the work of giving court-approved bankruptcy claims to former FTX EU customers, an action meant to repair trust in that area.
In Europe, Backpack EU already offers regulated derivatives under MiFID II, including perpetual futures according to Yahoo Finance. The EU operation includes managing the legal process of FTX EU claims and adding those assets into the new platform, according to Decrypt. The strategy combines spot and derivatives products and places importance on following local regulatory rules.
Trust approach and proof-of-reserves
Backpack has emphasized clarity through “trust minimization” and daily proof-of-reserves. According to the CEO, this seeks to attract users who care about verifiability over promises that lack audits. A proof-of-reserve is a method to show the presence of funds backing liabilities, and its usefulness depends on the way it works and independent checks.
Backpack’s next major step is getting ready for business in the United States during the year, while it continues the process to distribute FTX EU claims in Europe. These steps will show its ability to grow and build trust.
