The crypto derivatives and non-fungible token (NFT) exchange platform FTX is reportedly in the market for brokerage startups as part of its recently announced plans to expand support for stock trading..
The firm announced last Thursday that its US-based subsidiary FTX.US will launch commission-free stock trading through its app.allowing users to fund their accounts with fiat-backed stablecoins.
According to a Monday report by CNBC – which cited sources who “asked not to be named because the deal talks were confidential” – the company has held private meetings with at least three brokerage firms in recent months about possible acquisitions.
The three companies specifically cited were Webull, Apex Clearing, and Public.com.. All parties, along with FTX, have yet to comment on the rumours.
All companies are registered with the Financial Industry Regulatory Authority (FINRA) and are members of the Securities Investor Protection Corporation (SIPC), suggesting they are on friendly terms with aggressive government agenciessuch as the Securities and Exchange Commission (SEC).
FINRA-registered companies can trade stocks on behalf of their clients and are also authorized to provide investment advice, while SIPC membership means investors are financially protected if the company goes bankrupt.
Right now, it is unclear if FTX is primarily looking for start-ups to support its equity-focused initiatives or if the company also has its eyes on larger long-term acquisitions.
Earlier this month there was speculation after FTX founder and CEO Sam Bankman-Fried (SBF) filed a petition with the SEC showing that he had increased his stake in the popular streaming platform. Robinhood retail trade up 7.6% for some $648.2 million at the end of April.
Robinhood’s current market capitalization is about $8.4 billionaccording to Yahoo Finance, suggesting that FTX would need to allocate a considerable amount of capital if it wanted to acquire the company.
Having said that, SBF has noted in the past that ambitious acquisitions of the scale of Goldman Sachs are “not out of the question” for FTX if it continues on a strong growth trajectory..
However, the SEC filing does not offer many clues as it outlines that SBF has no plans to have any active involvement in Robinhood.instead of describing it as an “attractive investment” for HODL.
“The reporting persons intend to hold the shares as an investment, and currently have no intention of taking any action to change or influence control of the issuer, by engaging in any transaction having that purpose or effect,” the statement says. presentation.
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