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 from 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.
Related: FTX plans to acquire crypto exchange Bitvo as part of move into Canadian market
News of the acquisition followed FTX raising $400 million in a January funding round to reach a $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.
Explore the critical differences between Centralized and Decentralized Exchanges (CEX vs DEX) and understand which crypto trading platform suits your needs in our comprehensive guide.
MiyukiDelve into the transformative strides of MetaMask's intents-based routing mechanism and unravel the complexities surrounding Ethereum's Dencun upgrade. A deep dive into the latest innovations and debates steering the blockchain frontier.
BrianExplore the strategic depth in Bernstein's analysis of Bitcoin mining stocks. Understand the recent underperformance, uncover potential buying opportunities, and discover why Bernstein recommends a bullish stance on Riot Platforms and CleanSpark ahead of Bitcoin's next halving event.
WeiliangExplore the stringent actions by Germany’s BaFin and Japan’s Financial Services Agency against MEXC Exchange for operating without proper authorization, underscoring the critical importance of regulatory compliance in the crypto market.
MiyukiExplore the resurgence of Decentralized Finance (DeFi) in 2024. Delve into the challenges, leadership profiles, technological advancements, and strategic positioning that are shaping DeFi into a formidable force in the new era of financial innovation.
BrianExplore the intricate legal battle between Citadel Securities and Terraform Labs over the collapse of terraUSD (UST). Dive into the allegations, Citadel's firm denial, and the broader implications for the cryptocurrency market.
WeiliangCreditors approve a pivotal reorganization plan for the bankrupt crypto lender Celsius Network, promising the return of 67%-85% of holdings. Dive into the details of the plan, legal challenges, and the impact on the crypto industry
MiyukiGrayscale's GBTC trust conversion has contributed to the surge, with these funds collectively holding around 647,651 bitcoins, equivalent to $27.5 billion in AUM, according to CC15Capital.
AlexProsecutors claim that Lee intentionally concealed challenges related to BXA token listing, with the alleged aim of profiting and circumventing financial regulations.
AlexThe decision to amend these criteria was made during the SEC's meeting on March 2, 2023, where principles for the enhancement of investment and service standards in the digital asset space were approved.
Alex