Backpack Exchange Review 2027: Fees, Volume and Safety

Backpack is the product of Coral, a software company founded by Armani Ferrante and Tristan Yver. Ferrante is a well-known developer in the Solana community and creator of a widely used programming framework. Both founders had earlier worked at companies in the FTX group. When FTX failed in November 2022, their own start-up lost a large part of its funds that had been held there.

That experience shaped their next step. They first released Backpack, a self-custody wallet, and the Mad Lads NFT collection, which made the brand popular among Solana users. The exchange followed, with the stated aim of building a platform that is regulated from the start and transparent about customer assets.

The exchange operates from Dubai, where it holds a licence from the Virtual Assets Regulatory Authority.

In early 2025 Backpack announced that it had bought FTX EU, the Cyprus-based former European subsidiary of FTX, in a sale approved by the bankruptcy court and the Cyprus securities regulator. The purchase had two consequences.

First, Backpack took on the task of returning money to the former customers of FTX EU, who had waited more than two years for their funds. It ran the claims process and paid out balances in euros.

Second, it acquired a licence under the EU's MiFID II rules, the framework for investment firms. That licence, held by what is now Backpack EU, allows the company to offer crypto derivatives such as perpetual futures to European customers on a regulated basis. Very few crypto exchanges can do that, because a MiCA licence alone covers spot services and not leveraged derivatives.

For a company founded by former FTX staff, repaying FTX's European customers was also a statement about how it intends to do business.

The product set is compact and designed around a single collateral pool.

• Spot trading in bitcoin, ether, Solana, stablecoins and a selected list of other tokens, with an emphasis on Solana-based assets.
• Perpetual futures with leverage on major coins.
• Lending and borrowing. Idle balances can be lent automatically to other traders and earn interest, and they continue to count as collateral for your positions.
• Interest-bearing collateral. Because lending is built into the margin system, the assets backing a futures position can earn a yield while they sit there. This is the feature that most distinguishes Backpack from its rivals.
• Integration with the Backpack wallet, so that users can move between self-custody and the exchange easily.

The coin list is much shorter than at large offshore exchanges. Liquidity is good in the main pairs and limited beyond them.

A word on automatic lending. It is convenient, and it means that your assets are lent to margin traders through the exchange. The system is over-collateralised and positions are liquidated when margin falls, but lending always carries some risk. You can switch the feature off if you prefer to keep balances idle.

Registration requires identity verification with a document and a face check, in line with its licences. Many users fund their accounts with crypto, especially stablecoins and SOL, often from the Backpack wallet. Bank transfers are supported in some regions.

Support is available by chat and email, and the company is active on social media, where the founders often answer questions directly. The interface is modern and fast, and the mobile app closely mirrors the web version.

Backpack has used points programmes and seasonal reward campaigns to attract traders, a common tactic among newer exchanges. Such programmes can be worthwhile for people who would trade anyway. They also tempt users to trade more than they otherwise would, and fees and losses can easily exceed the value of any reward. Do not increase your risk to chase points.

Strengths:

• Real licences in Dubai and the EU, including for derivatives.
• A capital-efficient margin system in which collateral earns interest.
• A team with a strong engineering reputation.
• A clear public stance on separating customer assets.

Weaknesses:

• A short operating history.
• A small coin list and thinner liquidity than the leaders.
• A fee schedule and product set that are still changing.
• Limited fiat options in many countries.

Backpack suits traders who are active in the Solana ecosystem, European users who want regulated perpetual futures and anyone attracted by the idea of earning interest on margin collateral. It is also a reasonable choice for people who prefer newer platforms built with the lessons of 2022 in mind.

Beginners who want a simple way to buy bitcoin with a bank card, and investors who want the reassurance of a decade-long record, will be better served by an older exchange.

Bybit EU and OKX hold MiCA licences and offer far deeper markets and more coins; OKX and Kraken also provide regulated derivatives in Europe through separate investment-firm licences. Backpack is smaller than all three. It competes on product design, on its link with the Solana community and on its unusual origin story.