FTX US, a popular cryptocurrency exchange, announced on Tuesday about taking a stake in the leading stock exchange operator IEX Group with the objective to expand the access for institutional and retail investors to cryptocurrencies.
The two companies have decided to come together and build a digital market structure for investments and trading securities in cryptocurrency and operate closely with the regulators. However, during the announcement on Tuesday, FTX did not disclose its terms and conditions as it may be IEX‘s “significant investor. “ The companies made a deal which will be based on regulatory approval as well as other conditions.
According to the Chief Executive Officer of both FTX US and FTX, Sam Bankman-Fried, this investment will make the company aligned with the most innovative and trusted platforms in the equity market. Traditional and crypto financial markets are integrating at a fast pace, bringing them closer to each other.
FTX US partnership will be the first significant push into IEX’s trading crypto assets, and the exchange is featured in a book by Michael Lewis, Flash Boys, on high-frequency trading. FTX will offer an easy entry point for retail and institutional investors and grant them access to digital assets, as stated by Vera Newhouse during an interview. FTX will enter into equity trading, and it has signaled a push for institutional clients.
Compared to the New York Stock Exchange of Intercontinental Exchange Inc. and NASDAQ, IEX has a lesser market share, representing around 2.7% of the US equity volume as opposed to over 17% of NASDAQ, as stated by Bloomberg’s compiled data.
According to Bankman-Fried on IEX Co-Founder and CEO Brad Katsuyama, FTX has a great vision for the exchange that fulfills the needs of every investor with the aim of treating them fair. FTX also operates with the same notion.
