FTX reportedly looking for law complying brokerage startups under its stock trading plans

As part of its recently stated intention to increase support for stock trading, crypto derivatives exchange and NFT giant FTX is purportedly looking for brokerage startups.

Last Thursday, the company announced that its US-based subsidiary FTX.US would begin offering zero-commission stock trading through its app, allowing users to fill their accounts with fiat-backed stablecoins.

According to a report by CNBC published on Monday, the exchange has held private discussions with at least three brokerage firms over the past few months discussing potential buys, citing sources who requested not to be named because the purchase conversations were confidential.

Webull, Apex Clearing, and Public.com were the three companies explicitly mentioned. All of the parties, including FTX, have yet to respond to the rumors.

All of the firms are members of the Securities Investor Protection Corporation (SIPC) and registered with the Financial Industry Regulatory Authority (FINRA), implying that they are fully complying with government watchdogs like the Securities and Exchange Commission (SEC).

Notably, the exchange is known for its cooperative hands when it comes to regulatory talks. Recently, as TheCoinRise published, investment banking giant Goldman Sachs has reported plans on partnering with FTX for regulatory help.

FINRA-registered firms can trade stocks on behalf of their clients and provide investment advice, while SIPC membership ensures that users are financially safeguarded if the firm falls down.

What does FTX aim for?

It’s unclear at this point if FTX is solely interested in startups to support its stock-focused operations or if the company is also interested in larger acquisitions in the long run.

The founder and CEO Sam Bankman-Fried (SBF) filed a statement with the Securities and Exchange Commission (SEC) in late April stating that he had increased his interest in popular retail trading platform Robinhood to 7.6% for about $648.2 million.

SBF has previously stated that if FTX continues on a strong upward growth trajectory, ambitious acquisitions on the scale of Goldman Sachs “is not out of the question.”

The SEC filing, on the other hand, doesn’t provide many hints, as it states that SBF has no plans to participate actively in Robinhood, rather than portraying it as an “attractive investment” for HODL.

Nonetheless, the dreams of FTX to expand its business to a whole different level are finally coming true. In February, the exchange was hiring software developers for its blockchain and gaming unit.