FTX Acquires Stake in US National Stock Exchange Platform IEX

FTX Acquires Stake

Welcome back to the Tribe! In this post we dive into the news that FTX Acquires Stake In IEX!

Nothing should be considered investment or financial advice. Enjoy the ride!

FTX Acquires Stake In IEX

FTX has acquired a stake in US regulated stock exchange platform IEX. The IEX Group controls the exchange. Neither party has disclosed any financial details of the investment but some sources have surmised that the deal could be north of $100 million. CEO Sam Bankman-Fried said the move is strategic as the vision of both companies aligns.

FTX Scoops Significant Shares in NYSE Competitor

Major cryptocurrency exchange FTX has invested in a New York-based securities platform managed by the IEX Group. The deal remains subject to regulatory approval and both firms expect to finalize the technicalities by May 2022.

Specific terms of the investment agreement remain undisclosed at the time of writing this report. However, some sources claim the cash injection could exceed $100 million.

IEX is joining forces with @FTX_Official to help shape market structure for digital assets. Read the joint press release: https://t.co/o138Ojz5UR

— IEX (@IEX) April 5, 2022

CEO Sam Bankman-Fried opined that the firm’s investment in a regulated equities provider could aid FTX to establish itself as a dominant force in the global digital asset economy. Bankman-Fried also added that the move has the potential to foster better relations between crypto service providers and market supervisors.

“Investing in IEX created a tremendous opportunity for FTX US. With this investment, we’re aligned with one of the most trusted and innovative companies in the equities markets.”

IEX stepped into the stock markets back in 2016, hoping to deliver an alternative trading system and compete with more established entities such as Nasdaq and the New York Stock Exchange (NYSE).

CEO and Co-Founder of IEX, Brad Katsuyama noted that both firms have similar ambitions and could work together to develop their respective markets. Katsuyama said:

“From the first conversation with Sam, it was clear to me that FTX and IEX were truly aligned on the future potential for digital assets and the unique roles our firms could play as partners in shaping market structure that benefits the end investor”

Crypto Companies Expanding Aggressively

The digital current market might be in a lull at the moment but virtual asset service providers (VASPs) and crypto exchanges are making strides to expand their businesses as each company looks to solidify their position in the company.

For FTX, the investment in IEX is the latest in a slew of strategic moves geared towards establishing the Bahamian-based platform as a dominant industry stakeholder.

FTX also recently bagged crypto licenses in Cyprus and Dubai, allowing the exchange to do business in Europe and service investors in the Emirates. In addition, the exchange also plans to open a regional office in Dubai.

Crypto.com signed a huge partnership with FIFA for the upcoming 2022 World Cup tournament in Qatar. The deal will provide the platform with advertising access to billions of viewers around the world.

Binance also bagged an operational license from Emirati authorities earlier in March. CZ’s American affiliate, Binance US also closed a $200 million funding round. Following the massive cash injection, the platform’s American subsidiary is now valued at $4.5 billion.

Anti-Money Laundering Regulation

Last month EU parliament voted on a controversial Anti-Money Laundering (AML) regulation that outlawed even the smallest anonymous crypto transactions. But it seems the new Digital Euro would be exempted from the strict AML regulation.