The FTX Stocks platform has been in beta testing for select U.S. users since May, but the firm reported it would be available to all domestic customers sometime in the summer.
The United States-based subsidiary of cryptocurrency exchange FTX will acquire Embed Financial Technologies as part of a deal aimed at “enhancing” the company’s stock offering.
In a Tuesday announcement, FTX US said it will purchase Embed Financial Technologies and its subsidiary, clearing firm Embed Clearing, for an undisclosed amount “pending satisfaction of customary closing conditions and regulatory approval.” The deal followed the crypto firm’s announcement in May that it would be launching a stock trading platform, with FTX Stocks partnering 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 facilitating the crypto exchange’s stock offering. The FTX Stocks platform has been in beta testing for select clients in the United States since May, with the exchange reporting on Tuesday 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 options and futures contracts on Bitcoin (BTC) and Ether (ETH). FTX CEO Sam Bankman-Fried said the exchange will continue to hire new personnel, in contrast to crypto firms including Coinbase, Crypto.com and Gemini, which have all announced staff cuts.
News of the acquisition followed FTX raising $400 million in a January funding round to reach an $8 billion valuation. BlockFi also announced on Tuesday that it had signed a deal with parent company FTX to secure a $250 million revolving credit facility.