Despite the ongoing market crash that cryptomarket are going through, such actions of companies shows their firm determination towards growth
Prominent cryptocurrency exchange FTX made news again after canceling its sponsorship deal given the uncertain situations around the crypto market. But this time it made headlines due to some positive reasons that its US subsidiary named FTX US decided to take a bold step towards their long anticipated goal.
On Tuesday, FTX US announced that a crypto exchange company was going to buy Embed Financial Technologies. US subsidiary of crypto exchange led by Sam-Bankman Fried expressed its affection towards working with the prominent stock clearing company. Buying Embed Financial also fulfills a part of the company’s goal of expanding FTX stocks, its equities division. This made FTX US buy Embed Financial Technologies. However, no terms and conditions or any such details were revealed at the time of announcement.
As far as Embed Financial Technologies is concerned, the company is known for providing facilities like white label brokerage services and APIs or application programming interfaces to registered investment advisors and brokers or dealers. During the announcement, CEO of Embed, Michael Giles said that teams of both the companies have a shared vision and dedication towards building from scratch to up in order to democratize and ease access to financial services.
ALSO READ – Web 3.0 as a business model of a decentralised virtual world
FTX US has been trying to expand its equity platform since last year where the company said that it would not be charging any commission or trading fees while following Robinhood’s model of low cost brokerage mode, that made it reach to the fame where it stands today. FTX US unit also said that it would not monetize orders of traders by selling their flow to traders with high frequency. This is considered to be a controversial practice dubbed as payment-for-order flow because of which Robinhood had to face criticism.
President of FTX US, Brett Harrison stated that the company anticipates to serve such a comprehensive trading application who’s span would be over all asset classes. He said that equities and options trading like operations necessarily needs services like clearing and custody. Along with their partnership with Embed let FTX US see their potential as they have made such excellent technology and infrastructure in order to provide such services.
Source: https://www.thecoinrepublic.com/2022/06/22/whats-the-plan-of-ftx-us-after-buying-a-stock-clearing-platform/