U.S.-based subsidiary of cryptocurrency exchange FTX will acquire Embed Financial Technologies in a deal aimed at “expanding” the company’s share offering.
In an announcement on Tuesday FTX US said it will acquire Embed Financial Technologies and its subsidiary clearing firm Embed Clearing for an undisclosed amount “until normal closing conditions and regulatory approval are met.” The deal follows the crypto firm’s May announcement of the launch of a stock trading platform, with FTX Stocks partnering with Embed Clearing to “execute, clear and store” user accounts and trades.
According to FTX US President Brett Harrison, the acquisition of the clearing firm will provide the technology and infrastructure to facilitate the listing of crypto exchange shares. The FTX Stocks platform has been in beta testing for select U.S. clients since May, and the exchange said on Tuesday that it will be available to all local clients over 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 an options and futures contract offering for Bitcoin (BTC) and Ether (ETH). FTX CEO Sam Bankman-Fried said the exchange will continue to hire new staff, in contrast to crypto firms including Coinbase, Crypto.com and Gemini who have announced layoffs.
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The news of the acquisition follows FTX raising $400 million in a January funding round to reach an $8 billion valuation. BlockFi also announced on Tuesday that it has signed an agreement with parent company FTX for a $250 million revolving line of credit.
Credit : cointelegraph.com