FTX US, the United States subsidiary of FTX Derivative Exchange has announced its acquisition of Embed, a regulated Whitelabel brokerage services firm. As a new FINRA, DTC, NSCC, Nasdaq, and IEX member clearing firm, Embed offers brokerage services and APIs to licensed broker-dealers and registered investment firms.
FTX US will enhance its service provisions to its customers through the Embed infrastructure as it looks to establish its latest FTX Stocks product.
“As I mentioned when we launched FTX Stocks, our new equities and ETF trading platform, our goal at FTX is to provide a comprehensive trading application that spans all asset classes,” said Brett Harrison, FTX US President. “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. We’re looking forward to working together to integrate both our teams and our technology as we continue to build FTX Stocks.”
While the acquisition amount was not revealed, the shared announcement revealed that the deal is still subject to regulatory approvals and all other customary closing conditions.
FTX US to Cover Regulatory Bases With Embed
There is a growing polarization in the United States with respect to the intersection of the stock market and crypto. While regulators are very cautious granting licenses to crypto exchanges trying to offer stocks, FTX US has made a proactive move to cover all of its basis by acquiring Embed.
“When we originally began working with the FTX US team as their clearing partner, we soon realized how similar our respective cultures were,” Founder & CEO of Embed, Michael Giles, “Our teams have a shared vision and dedication to building from the ground up to democratize access to financial services, and Embed’s latest securities technology is the ideal complimentary to FTX’s leading crypto solutions. This combination enables the combined group to bring an industry-leading securities and crypto solution to market, which was previously sorely lacking, for the benefit of FTX US customers and exciting new B2B clients.”
Bolstered with its $400 million funding round earlier this year, FTX US, with the acquisition of Embed, has placed its faith in the longer-term prospect of its business, and the future of finance