U.S. subsidiary of cryptocurrency exchange FTX is to acquire Embed Financial Technologies in a deal to “enhance” the company’s stock offering.
In an announcement on Tuesday, FTX US said it would buy Embed Financial Technologies and its subsidiary, clearing house Embed Clearing, for an undisclosed amount “subject to satisfaction of customary closing conditions and regulatory approval. “. The deal follows the crypto firm’s announcement in May that it would launch a stock trading platform, with FTX Stocks partnering with Embed Clearing to “execute, clear and hold” stock accounts. users and transactions.
According to FTX US Chairman Brett Harrison, the acquisition of the clearing house will provide the technology and infrastructure to facilitate the crypto exchange’s stock offering. The FTX Stocks platform has been in beta testing for select US clients since May, with the exchange reporting on Tuesday that it will be available to all domestic clients over the summer.
Embed Clearing is a member of the Financial Industry Regulatory Authority, the Depository Trust Company, the National Securities Clearing Corporation, Nasdaq and the Investors Exchange. In addition to Embed, FTX US acquired crypto derivatives platform LedgerX in August 2021 as part of a move to offer options and futures on Bitcoin (BTC) and Ether (ETH). FTX CEO Sam Bankman-Fried said the exchange will continue to hire new staff, unlike crypto companies such as Coinbase, Crypto.com and Gemini, which have all announced staff cuts.
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News of the acquisition followed FTX which raised $400 million in a funding round in January to hit an $8 billion valuation. BlockFi also announced on Tuesday that it has signed an agreement with parent company FTX for a $250 million revolving credit facility.