As it attempts to establish a positive rapport with authorities over its new stock product offerings, FTX US is strengthening its grip.
The company reported that it had paid an undisclosed amount to acquire Embed Financial Technologies Inc. and its wholly-owned subsidiary Embed Clearing LLC.
The transaction is subject to usual closing requirements and regulatory clearances, according to the trading platform. As FTX US offers significant money to assist Embed in expanding and fulfilling its brokerage and clearing duties, the transaction is profitable for both businesses.
The firm provides APIs and brokerage services to registered financial advisers and licensed brokers. It had FTX US as one of its many clients up until this point. The new clearing firm is a member of FINRA, DTC, NSCC, Nasdaq, and IEX.
Brett Harrison, the president of FTX US, stated that the company’s objective with the launch of FTX Stocks, a new stocks and ETF trading platform, is to offer a thorough trading application that covers all asset classes. Our relationship with Embed demonstrated that they had established great technology and infrastructure to deliver these services for equities and options trading, which unavoidably involves services like clearing and custody.
FTX US is rising through the ranks, and in March, when it secured $400 million at an $8 billion value, it was dubbed a unicorn.
Mergers and Acquisitions (M&A) operations are particularly relevant to the trading platform. The purchase of Embed is not the first of its sort; it has recently completed the acquisition of LedgerX, a clearing house governed by the Commodity Futures Trading Commission (CFTC).