- Rumor has it that crypto exchange FTX is preparing a major acquisition
- Insiders allege the company is seeking to buy a brokerage startup
- The news comes just days after FTX.US announced stock trading on its platform
FTX is in the news again, just days after its U.S. division made waves by implementing stock trading. Now, it sounds like FTX is trying to supplement the rollout of the stock trading with a major acquisition. What company might it be looking to buy?
The FTX platform has grown significantly in the last year, particularly its U.S. branch. It acquired the naming rights to FTX Arena, the home stadium of the NBA’s Miami Heat. Shortly after, it struck a deal with the MLB to put FTX logos on every umpire’s uniform. And of course, the company’s Super Bowl commercial with Larry David was talked about for days after its premiere.
Beyond advertising, FTX has also been growing its product offering. Perhaps most notable is its tokenized stock offerings; users can buy any of several dozen tokens linked to Wall Street stocks.
While the tokenized stocks didn’t take off like FTX had probably hoped, it did not stop the company from pursuing more traditional offerings. Now, it’s in the spotlight as its FTX.US fully embraces stock trading. And, it’s generating a lot of rumors to boot.
FTX Allegedly Preparing Brokerage Acquisition
Late last week, FTX.US shook the crypto market by announcing its plan to offer stock trading on its platform. The new offerings will make FTX the first crypto brokerage to add stocks, and it will put the platform in the same sphere as Robinhood (NASDAQ:HOOD).
And while FTX made this announcement, rumor has it that the company will be acquiring a brokerage startup to help underlie its new platform. Anonymous sources close to the matter reported that the company is in talks with three different startups relating to a buy-out deal.
Companies named by the source include Webull, Apex Clearing and Public.com. It’s worth noting that each of these companies are closely compliant with regulators. All three have Financial Industry Regulatory Authority (FINRA) registration. It’s also worth noting that earlier this month, FTX founder Sam Bankman-Fried took a near-8% stake in Robinhood.
As of yet, none of the startups nor FTX have commented on the matter.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.