FTX plans to take over three brokerage startups, and negotiations have been ongoing, according to some reports citing various sources.
>The crypto trading platform has contacted three brokerage startups, Webull, Public.com, and Apex Clearing connoting that it will be resuming its stock trading operations soon.
Although, FTX – along with Webull, Public.com, and Apex Clearing – refused to comment on the reported negotiations.
All licensed
Webull, Public.com, and Apex Clearing are all licensed brokerages with the Financial Industry Regulatory Authority (FINRA). They may buy and sell securities on their own or on behalf of customers.
Webull and Public.com are both licensed financial advisors.
A registered investment advisor may provide securities investment advice to customers. These licenses are often in relation to asset, portfolio, and wealth management.
Apex Clearing supplies Betterment and Wealthfront with clearing and custody services. Last year, it was under speculation that Webull was planning a $300 million to $400 million initial public offering.
Last year, Public.com began providing crypto assets on its website, and in March, its BitLicense application to provide the service to New York residents was granted.
Acquisitions to gain market share
In an SEC filing last week, Sam Bankman-Fried, the chief executive officer of FTX, stated that he increased his interest in Robinhood (HOOD) to 7.6 percent at the end of April. On the day of the deal, the closing price of HOOD shares was $9.81, valuing his interest in the firm at around $554 million.
HOOD was trading at $9.94 a share on Monday afternoon, after falling to $8.15 per share during the worst crypto and traditional market meltdowns two weeks before. Its current market capitalization is $8.7 billion.
FTX, the second-largest crypto derivatives exchange, has previously used acquisitions to gain market share.
FTX US, the company’s US affiliate, announced in August that it had agreed to buy derivatives business LedgerX. Bankman-Fried said that the move is indeed one of the most exciting announcements the company has ever had.