According to the sources, who are involved with the takeover discussions, FTX, a Bahamas-based crypto exchange has approached at least three privately held stock trading businesses for a potential takeover. FTX has spoken with companies such as Webull, Apex Clearing, and Public.com in recent months. As the negotiations are still going-on, the sources requested that their identities remain undercover. FTX announced its ambitions to enter the equity market last week. As part of its push to gain more customers, the exchange plans to provide commission-free trading in the United States.
FTX has already started making many strategic investments in the stock market. In April, 2022, FTX bought a share in IEX Group, a prominent stock exchange located in New York. Earlier this May, FTX CEO Sam Bankman-Fried, made a significant investment in Robinhood fueling suspicion that the crypto startup is planning for a potential takeover. However, without the founders’ consent, the Robinhood acquisition may be tough.
The exchange began trading equities on the FTX.US app for a limited number of customers last week, with broader rollouts ongoing. FTX has begun offering stock trading to a limited number of users in the United States, with the goal of expanding the service to be available to all U.S. consumers over the next few months. On its app, FTX intends to allow users to trade exchange-traded funds and equities in addition with cryptocurrencies such as Bitcoin, Ether, Dogecoin, and others.
FTX aims to expand the app’s trading capabilities in the future. As cryptocurrencies experience massive drops in the current bear market, it is a critical time for the exchange to create such growth. It is also a plan for FTX to attract new investors who are apprehensive to trade cryptocurrencies but are open to traditional investment under one roof.
