Backpack Exchange Plans phased U.S. Launch Focused on Spot Trading and Public Reserve Tests
Backpack Exchange is preparing a phased entry into the U.S. market, starting with spot trading and daily proof-of-reserve updates, according to CEO Armani Ferrante. The strategy emphasizes regulatory compliance and transparency, leveraging the company’s European experience to navigate state-level licensing requirements. The rollout will prioritize states with clearer regulatory pathways, aiming to rebuild trust through verifiable solvency and operational openness .
U.S. Entry Plan and Regulatory Requirements
The U.S. expansion hinges on obtaining money transmitter licenses and state-specific permits. Backpack plans a gradual rollout, beginning with spot trading due to its lower regulatory complexity and capital requirements compared to derivatives. This approach allows the exchange to test operational workflows and compliance frameworks before expanding its service offerings.
Reserve Tests and Trust Minimization
Central to Backpack’s strategy is its commitment to “trust minimization” through daily proof-of-reserve (PoR) audits. These checks use zero-knowledge proofs to verify that user assets are fully backed without exposing individual account details. While these daily updates enhance transparency, they complement rather than replace formal forensic audits and legal safeguards .
European Structure and Asset Acquisition
Backpack’s European subsidiary, operating under Cyprus’s MiFID II license, provides a regulatory blueprint for its U.S. ambitions. The acquisition of FTX EU’s assets earlier in 2025 facilitated this compliant derivatives infrastructure. The company aims to replicate this model in the U.S. by securing licenses and adhering to rigorous operational standards
Backpack’s U.S. entry could offer a new spot trading option emphasizing transparency and compliance. However, the exchange must overcome scrutiny related to its past FTX associations and demonstrate robust fund segregation and audited reserves. Success depends on licensing progress and state regulatory responses, with trust hinging on tangible safeguards beyond public reports .
