FTX is a Bahamas-based cryptocurrency exchange. The platform of trading created by Sam Bankman-Fried has been interested for several months in the possibility of offering its users trading stocks in addition to cryptocurrencies. To do this, the young company wishes to acquire three brokerage start-ups. Will FTX succeed in realizing its ambition and accessing the trading shares?
A stock trading service already in addition for some users on FTX
FTX has launched its stock trading service to a limited number of users in the United States. But his ambition is well and truly to extend this service to all American users of FTX in the coming months. This interest in brokerage likely stems from the recent cryptocurrency exchange craze in the trading actions. In addition, the CEO of FTX, Sam Bankman-Fried, had bought shares in the brokerage firm Robinhood up to 7.6%.
Three start-ups in the sights of FTX
According to the American television channel CNBC, FTX plans to acquire three brokerage start-ups. Sources familiar with the matter revealed that FTX had approached Webull, Apex Clearing and Public.com for a possible acquisition. Negotiations have only just begun and so far no agreement has been signed. These three start-ups in addition to their involvement in stock brokerage, are also versed in the exchange of cryptocurrencies. A double activity that might have motivated FTX to buy them.
the trading shares: a long-standing ambition for the company
Rumors about a possible entry into stock brokerage at FTX have been circulating for some time. On May 21, 2022, this article reported the opening of a brokerage service for a few users in the United States. One of many actions that demonstrated that FTX wanted to attract people attached to traditional finance.
FTX aspires to become the leading cryptocurrency exchange in the United States
The exchange opened stock trading on the FTX.US app for a limited number of users before going rampant for all. Indeed, it wants to offer exchanges without commissions in the United States to attract more users. FTX’s ambition would be to become a cryptocurrency and stock exchange platform that would allow its users to access both options on a single application. This whole strategy is in line with what Brett Harrison, President of FTX US, said in a press release: “Our goal is to provide a holistic investment service to our clients across all asset classes. With the launch of FTX Stocks, we have created a single integrated platform for retail investors to easily trade cryptos, NFTs and traditional stock offerings through a seamless and intuitive user interface. There is a clear market demand for a new retail investing experience that provides complete transparency of order routing to clients and is not dependent on payment for order flow. »
Clearly, FTX, which started and thrived on cryptocurrency exchanges, now seems to be aiming higher. Become the first platform for cryptocurrency exchanges in the United States while opening its application to brokerage so that its users can also access the Stock Exchange without going through brokerage agencies. In this sense, this approach is part of an essential value of the ecosystem: disintermediation.
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Student passionate about entrepreneurship and fascinated by the technologies behind cryptos! Yes, I am convinced that the two are intimately linked: blockchain and NFTs are revolutionizing many sectors and presenting unprecedented opportunities.