- FTX organizer and CEO Sam Bankman-Fried (SBF) documented a proclamation with the Securities and Exchange Commission (SEC) in late April expressing that he had expanded his premium in well-known retail trading platform Robinhood to 7.6% for about $648.2 million.
- Robinhood’s ongoing business sector valuation is $8.4 billion, inferring that FTX would need to burn through a lot of cash to secure the organization. SBF has previously stated that if FTX continues on a strong upward growth trajectory, ambitious acquisitions on the scale of Goldman Sachs is not out of the question.
- FINRA-enrolled firms can exchange stocks for their clients and give venture exhortation, while SIPC participation guarantees that financial backers are monetarily safeguarded assuming the firm falls flat
FTX has reportedly engaged with at least three brokerage start-ups about prospective acquisitions in the past several months as part of its efforts to push out stock trading services. As part of its recently stated plans to expand support for stock trading, crypto derivatives exchange and nonfungible token (NFT) platform FTX is purportedly looking for brokerage start-ups.
Increased Interest In Popular Retail Trading Platform Robinhood To 7.6% For About $648.2 Million
Last Thursday, the company announced that its US-based subsidiary FTX.US would begin offering zero-commission stock trading through its app, allowing users to fill their accounts with fiat-backed Stablecoins.
According to a Monday report from CNBC, the business has held private discussions with at least three brokerage firms over the past few months discussing potential acquisitions, citing people who mentioned not to be named in light of the fact that the buy discussions were private.
Webull, Apex Clearing, and Public.com were especially mentioned. All gatherings included, including FTX, still can’t seem to answer the tales. All of the firms are members of the Securities Investor Protection Corporation (SIPC) and registered with the Financial Industry Regulatory Authority (FINRA), implying that they are on good terms with government watchdogs like the Securities and Exchange Commission (SEC).
FINRA-registered firms can trade stocks on behalf of their clients and provide investment advice, while SIPC membership ensures that investors are financially protected if the firm fails. It’s muddled as of now in the event that FTX is exclusively keen on new businesses to help its stock-centered tasks or on the other hand assuming the organization is likewise keen on bigger acquisitions in the long run.
FTX founder and CEO Sam Bankman-Fried (SBF) filed a statement with the Securities and Exchange Commission (SEC) in late April stating that he had increased his interest in popular retail trading platform Robinhood to 7.6% for about $648.2 million.
A Strong Upward Growth Trajectory
According to Yahoo Finance, Robinhood’s current market valuation is $8.4 billion, implying that FTX would have to spend a significant amount of money to acquire the company. SBF has previously stated that if FTX continues on a strong upward growth trajectory, ambitious acquisitions on the scale of Goldman Sachs are not out of the question.
However, the SEC filing doesn’t reveal much, as it states that SBF has no plans to participate actively in Robinhood, rather than describing it as an attractive investment for HODL. The assertion expressed, that The Reporting Persons intend to hold the Shares as speculation and presently in no way want to make any move to change or impact the Issuer’s control, or participate in any transaction having that purpose or effect.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/05/24/ftx-is-said-to-be-looking-for-brokerages-in-order-to-start-trading-stocks/