The initiative is currently “pending satisfaction of customary closing conditions and regulatory approval,” while the price of the acquisition will supposedly not be revealed.
In a Tuesday announcement, FTX US, the subsidiary of crypto derivatives exchange FTX, indicated that it successfully acquired Embed Financial Technologies and its subsidiary Embed Clearing LLC, as part of its plan to expand the previously fired up equities division dubbed FTX Stocks.
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In fact, the stock exchange FTX Stocks was launched back in May. Since then, the platform has been in a testing phase where a limited number of users in the United States from the waitlist were reportedly selected for participation. However, yesterday, FTX US implied that the platform would finally see the light of day in the upcoming months.
As stated by Brett Harrison, President of FTX US, Embed will allow the company to expand its financial services to users in the United States. On top of that, the partnership between the two crypto entities will provide FTX Stocks the opportunity to “execute, clear, and custody” accounts and trades of its users. He added:
“Our goal at FTX is to provide a comprehensive trading application that spans all asset classes. For equities and options trading this necessarily includes services such as clearing and custody, and our partnership with Embed showed us that they have built excellent technology and infrastructure to provide these services."
Likewise, Embed founder and CEO Michael Giles also added that the partnership between FTX US and Embed will allow the two giants to introduce “an industry-leading securities and crypto solution to market.”
Embed Clearing is part of Nasdaq, Investors Exchange, the Financial Industry Regulatory Authority (FINRA), Depository Trust Company (DTC), and National Securities Clearing Corporation (NSCC).
Apart from obtaining Embed, FTX is also seeking to enter Canada by acquiring the Alberta-based crypto asset trading platform Bitvo. FTX believes that the latter entity will serve Canada's market "in a variety of capacities."
Earlier in January, the Bahamian-based cryptocurrency exchange FTX secured $400M to bring more talents into its team, attract more customers, and explore other business-related opportunities. The funding round reportedly valued the company at $8B.