Interpreting Backpack's Acquisition of FTX EU: 110,000 Users, Exclusive Licenses, and the Future of Full-Fledged Finance
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Interpreting Backpack's Acquisition of FTX EU: 110,000 Users, Exclusive Licenses, and the Future of Full-Fledged Finance
A seemingly simple acquisition, yet conceals Backapck's strategic ambitions.
Navigating Web3 tides with focused insightsAuthor: TechFlow
At the beginning of 2025, Backpack has been making bold moves.
Backpack announced that its official season will launch in February 2025, with its long-awaited formal derivatives functionality finally on the horizon.
On January 7, Backpack once again made headlines.
It announced the successful acquisition of the former FTX Europe business, which holds a license under the EU’s updated Markets in Financial Instruments Directive (MiFID II). This acquisition has already been approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), with Backpack EU expected to officially launch in the first quarter of 2025.
While appearing to be a simple acquisition, it reveals Backpack’s strategic ambitions.
First, as part of the deal, Backpack will oversee the distribution of bankruptcy claims to former FTX EU users. This means Backpack will directly gain access to over 110,000 new potential high-quality users. While this comes with responsibility, it also presents a unique opportunity to earn user trust. If Backpack successfully manages these claims and rebuilds trust, these 110,000 European crypto users could become a vital moat for the platform in the future.
Hence, in a recent interview with Bloomberg, Backpack CEO Armani Ferrante stated that the top priority is ensuring FTX customers are made whole.
Second, the most strategically valuable aspect of this acquisition is obtaining the MiFID II license.
The Markets in Crypto-Assets Regulation (MiCA) was fully implemented across the EU on December 30, 2024, imposing strict requirements on exchange准入. As a result, many offshore exchanges without proper licensing have been forced to shut down their derivative services in Europe—turning the European compliant crypto derivatives market into a blue ocean.
Through this acquisition, Backpack becomes the only platform in the EU licensed to offer perpetual contracts and other crypto derivatives, serving the entire EU market—an area accounting for approximately 20–30% of global crypto trading volume.
Finally, and more importantly, the MiFID II license is not limited to cryptocurrency trading—it is a full financial services license covering bond issuance, stock trading, wealth management, clearing and settlement, and more. In short, Backpack can now legally conduct any financial service that traditional institutions like Goldman Sachs offer within the EU.
This means Backpack could eventually expand into traditional financial services such as stocks and bonds, positioning itself as an integrated “crypto + traditional finance” platform, accelerating the convergence between traditional finance and digital assets.
For example, in the future, Backpack EU could enable seamless integration between crypto trading and traditional payment systems, including support for the Single Euro Payments Area (SEPA)—the most widely used payment method in Europe—allowing electronic transfers to any country or region within the eurozone.
Once two-way payment flows between cryptocurrencies and fiat currencies are fully enabled, whether buying crypto with fiat or purchasing traditional financial assets like stocks with crypto, the possibilities are exciting.
This creates a significant competitive advantage over offshore crypto exchanges—they may seem similar, but fundamentally, they’re operating in entirely different leagues.
In summary, Backpack's differentiation lies in four key areas: First, a compliance-first development strategy, rapidly acquiring regulatory credentials through the purchase of an already-licensed entity; second, a global vision from day one, with strategic focus on the European market, becoming the only EU platform licensed for perpetual crypto derivatives; third, a commitment to innovation by integrating traditional finance with crypto services; and fourth, a comprehensive ecosystem combining CEX, Wallet, and NFTs.
As an integrated platform featuring an exchange (Backpack Exchange), wallet (Backpack Wallet), and NFT ecosystem (Mad Lads), Backpack is well-positioning itself for future growth through this acquisition. As the crypto market gradually moves toward regulation, its emphasis on compliance and user experience will give it a unique competitive edge.
Backpack EU is expected to officially commence operations in Q1 2025. This marks not only a major milestone for the platform, but also a crucial step in restoring the confidence of European users previously harmed by FTX. In 2025, Backpack has gotten off to a strong start.
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