Crypto Exchange FTX Shops Brokerage Start-Ups

It’s been just revealed that crypto exchange FTX is buying brokerage startups/ Check out the latest reports below.

FTX has been on the hunt to buy brokerage start-ups as the crypto exchange expands into stocks, and its CEO takes a major stake in Robinhood.

The Bahamas-based firm has approached at least three privately held trading start-ups about an acquisition, according to sources familiar with those negotiations, who asked not to be named because the deal talks were confidential.

It’s been also revealed that the discussions were still early and did not result in a term sheet, a source said.

CNBC notes that “Webull, Apex Clearing, and Public.com were among the companies FTX has spoken to in recent months, sources said. Webull, Apex, and Public.com declined CNBC’s requests for comment. FTX didn’t respond to a comment request.”

This move comes as investors increasingly hold crypto and stocks, and brokerage firms look to offer the assets under one roof.

Robinhood has pivoted its business model away from just stocks and focused on cryptocurrencies, while SoFi, Block, and other fintechs now offer both.

It’s also worth noting the fact that last week, FTX said it would make a move into equities. It plans to offer commission-free trading in the U.S. in an effort to acquire more customers.

“The U.S. has the largest retail base in the world and you don’t want to have to split into two different apps to trade two different asset classes,” Brett Harrison, president of FTX U.S., told CNBC in a phone interview last week.

He continued and said: “This is not a revenue-generating model for us, it’s more of a user acquisition strategy.”

Stay tuned for more news from the crypto space and make sure to check out the crypto market.