FTX US anticipates concluding the Investors Exchange investment in May 2022, subject to customary closing conditions and regulatory approval.
The bitcoin exchange run by Sam Bankman-Fried FTX continues to invest heavily in traditional finance, with its affiliate in the United States, FTX US, investing in Investors Exchange (IEX), a United States national stock exchange.
FTX US has entered into a strategic investment agreement with IEX Group, the operator of the IEX, to jointly build a market structure for buying, selling, and trading digital asset securities, the firm revealed Tuesday.
The transaction between IEX and FTX US is expected to close in May 2022, subject to usual closing conditions and regulatory approval.
The new partnership will offer services to both retail and institutional clients. IEX intends to continue operating under its current market structure and regulatory guidelines.
FTX and FTX US CEO Bankman-Fried noted that the engagement with IEX will contribute to the ongoing development of the cryptocurrency market structure and cooperation with regulators. He stated that he has long been a supporter of IEX CEO Brad Katsuyama’s objective for the exchange to be a fair marketplace, adding:
“Investing in IEX provided FTX US with a wonderful opportunity. We have associated ourselves with one of the most trusted and creative organisations in the equity markets with this transaction.”
Through engagement with authorities, IEX co-founder and CEO Katsuyama stated that the relationship with FTX intends to assist the US in becoming the largest player in digital assets globally. As he stated:
“To maximise its potential, the cryptocurrency and digital asset industries must engage with policymakers and truly scale what has been established […] We both view regulators as critical allies in establishing a clear road forward and achieving the best possible investor protection standards.”
Apart from the strategic investment, FTX and IEX intend to launch a new initiative inviting all investors to participate in a dialogue with authorities about the future market structure for digital asset securities. The companies intend to release additional information on the project at a later date.
Both FTX and FTX US have recently made significant investments in traditional finance. FTX Ventures, FTX’s venture capital arm, invested $100 million in Dave, a mobile banking application, last month, in connection with FTX US partnering with Dave to facilitate crypto payments.
FTX has also been in talks to invest in the Indian gaming firm Mobile Premier League, according to a Sunday report by TechCrunch, as it prepares to make another push into the Web3 market.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
