Crypto exchange FTX said to be on the hunt for brokerage start-ups
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FTX is said to be looking for acquisitions of brokerage start-ups as the crypto exchange expands into stock trading.
FTX is said to have approached at least three privately held trading start-ups, according to a CNBC report. The crypto exchange, run by Sam Bankman-Fried, has spoken to Webull, Apex Clearing and Public.com in recent months.
The report comes after stock trading app Robinhood Markets (NASDAQ:HOOD) surged 25% on May 13 after a business affiliated with Bankman-Fried reported a 7.6% stake in HOOD. Emergent Fidelity Technologies Ltd, a company whose sole owner is FTX founder Bankman-Fried, reported owning 56 million shares in Robinhood, according to a 13D filing.
In addition on Thursday FTX announced it's adding trading in stocks and ETFs to its popular crypto trading app.
On Tuesday, Robinhood CEO Vlad Tenev declined to say directly if FTX CEO reached out to him about taking a stake.
The CNBC report and 13D filing earlier this month came after a Citi analyst note said Robinhood (HOOD) could be worth $15/share in a potential takeover.