According to CNBC media sites, the FTX bitcoin exchange plans to purchase brokerage companies. The renewed interest follows the cryptocurrency exchange’s recent expansion into stock trading.
According to sources familiar with the talks, the Bahamas-based crypto exchange has approached at least three privately held stock trading businesses about acquiring them.
Because the negotiations were private, the sources requested that their identities be anonymous.
According to insiders, FTX has spoken with companies such as Webull, Apex Clearing, and Public.com in recent months.
FTX announced ambitions to enter the stock market last week. The exchange plans to offer commission-free trading in the United States to attract more users.
In the space, FTX has already made major investments. In April, the firm bought a stake in IEX Group, a prominent New York stock market. In addition, FTX CEO Sam Bankman-Fried purchased a large investment in Robinhood earlier this month, fueling suspicion that the crypto startup is seeking a buyer. However, the Robinhood takeover could be tough without the founders’ consent.
Market Changes and How to Respond
FTX has aspirations to become a top cryptocurrency exchange in the United States. The exchange began trading equities on the FTX.US app for a limited number of users last week, with a wider rollout planned.
On its app, where users trade cryptocurrencies like Bitcoin, Ether, Dogecoin, and others, the crypto exchange plans to allow users to trade exchange-traded funds and equities.
FTX has begun rolling out its stock trading service to a select group of US consumers, intending to make it available to all US customers over the next several months.
In the future, FTX hopes to expand the app’s trading capabilities. Given the present bear market’s massive drops in cryptocurrency prices, the exchange is now an ideal opportunity to expand. It’s also a way for FTX to attract new investors who might be hesitant to trade cryptocurrencies but are open to traditional investment under one roof.