Crypto Exchange, FTX, Acquires Stock Clearing Platform
Despite the unrepentant plunge of the crypto market, budding crypto exchange FTX has bought Embed Financial Technologies.
Such counter-intuitive investments show that these companies are resolute toward growth in the face of fierce market storms. But, this latest news is impressive for a couple of reasons.
On one hand, crypto enthusiasts will have vivid memories of that time when FTX made the rounds after walking back on a sponsorship deal due to uncertainty in the crypto market. Acquiring Embed Financial Technologies through its US subsidiary will bring relief and restore much-needed faith in the crypto industry.
On announcing the acquisition, the Sam-Bankman Fried-led company expressed its strong desire to work with the famous stock clearing company. Besides, the move will also enable the company to expand its equities component, FTX Stocks. The platform has been in beta for select US users since May. However, the company reports that it will be available to all domestic customers at some point during the summer.
The specific terms of the deal still remain unclear, but both companies will definitely broaden their outlooks as a result of the purchase.
A Closer Look at Embed Financial Technologies
Embed Financial Technologies is highly regarded for its white label brokerage services and application programming interfaces (APIs) facilities for registered investment advisors and brokers. CEO Michael Giles points out that both companies’ teams have a common vision and commitment to building from zero in a bid to democratize and offer easier access to financial services.
Embed Clearing belongs to several important entities, including the Depository Trust Company, Financial Industry Regulatory Authority, Investors Exchange, Nasdaq, and National Securities Clearing Corporation.
It’s necessary to note that FTX US has gone further than buying Embed. In August 2021, it acquired crypto derivatives platform, LedgerX as part of plans to offer futures contracts and options on BTC (Bitcoin) and ETH (Ether).
What Happens Next with Jobs?
The acquisition is likely not going to slash jobs. FTX CEO Bank-Friedman has offered reassurances that the exchange will continue to hunt and hire necessary personnel. This is against the grain of what has recently played out at other crypto firms such as Gemini, Crypto.com, and Coinbase.