The two companies will be developing a platform to buy, sell, and trade digital asset securities in a "clear, simple, and transparent market structure."
According to a news release, the crypto exchange will be the strategic investor of the IEX stock exchange, which will help FTX get the right tools to get approved by regulators and provide a safe environment for customers to invest in digital asset securities.
The investment was likely instigated due to IEX’s earlier success with securing regulatory approvals and being at the top of its game since its launch in 2013 as an approved stock exchange establishment.
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CEO of FTX Sam Bankman-Fried spoke on the strategic investment, regarding IEX as "one of the most trusted and innovative companies in equities markets." He added:
"I've long respected Brad's vision for IEX to be an exchange that caters to the needs of the investor and treats them fairly – part of the reason why we've operated similarly at FTX. As a result, we will collaborate on the further establishment of crypto market structure and work closely with regulators, allowing institutions around the world to enter the marketplace seamlessly."
Likewise, Brad Katsuyama, who is IEX’s Co-founder, spoke on the importance of seeking approval from regulatory authorities in order to "truly scale what has been built." He believes that the two companies will be able to shape the crypto securities market structure, ensuring a safe environment for investors, and being on good terms with the regulators.
FTX has been rapidly expanding its presence ever since the US crypto executive order was signed. Back in March, FTX made a strategic investment of $100M into a banking app Dave to accelerate the development of its ecosystem.