As the cryptocurrency exchange aims to expand into the equity market and its CEO invests heavily in Robinhood, FTX is looking for stock brokerage start-ups.
The Bahamas-based company has reportedly contacted at least three private brokerage start-ups about a possible purchase. According to CNBC, the sources asked not to be released, as the discussions are being kept secret. According to a source, the talks were still in their early stages and did not result in an agreement.
According to insiders, FTX was in contact with Webull, Apex Clearing and Public.com over the past few months.
Why go public?
Investors are increasingly holding cryptos and stocks at the same time and brokerage firms are trying to bring the two products closer together to provide investors with everything they need.
While fintechs like SoFi offer crypto trading and stocks, Robinhood, for example, has changed its revenue model by integrating cryptocurrencies.
FTX announced its entry into the shares last week. In order to attract more investors, it aims to offer commission-free stock trading in the United States.
Whereas Bankman Fried, the CEO of FTX, describes Robinhood as a “great investment” with no ambition to buy the company or make any changes, the filing raises questions. Indeed, the 13D filing with the SEC was typical of activist investors. A 13G is usually filed by passive investors.
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And yet, without the approval of the founders, an acquisition of Robinhood could be difficult. Robinhood’s dual-class share structure gives co-founder and CEO Vlad Tenev and co-founder Baiju Bhatt more than 60% of the voting rights.