The US subsidiary of cryptocurrency exchange FTX will acquire Embed Financial Technologies as part of a deal aimed at “improving” the company’s stock offering.
In an announcement on Tuesday, FTX US said it will buy Embed Financial Technologies and its subsidiary, clearing company Embed Clearing, for an undisclosed amount “pending the satisfaction of customary closing conditions and regulatory approval.” The deal came after the crypto firm announced in May that it would launch a stock trading platform, in which FTX Stocks would partner with Embed Clearing to “execute, clear and custody” user accounts and trades.
According to FTX US President Brett Harrison, The acquisition of the clearing firm will provide the technology and infrastructure that will facilitate the exchange’s share offering. The FTX Stocks platform has been in beta testing for select customers in the United States since May, and on Tuesday the exchange announced that it would be available to all domestic customers sometime in the summer.
Embed Clearing is a member of the Financial Industry Regulatory Authority, Depository Trust Company, National Securities Clearing Corporation, Nasdaq, and Investors Exchange. In addition to Embed, FTX US acquired crypto derivatives platform LedgerX in August 2021 as part of a move to offer futures and options contracts on Bitcoin (BTC) and Ether (ETH). FTX CEO Sam Bankman-Fried said that exchanges will continue to hire new staff, in contrast to cryptocurrency firms such as Coinbase, Crypto.com, and Gemini, which have all announced staff cuts.
News of the acquisition came after FTX raised $400 million in a funding round in January to reach an $8 billion valuation. BlockFi also announced on Tuesday that it had entered into an agreement with parent company FTX to secure a $250 million revolving credit facility.
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