FTX US acquires Embed Financial subsidiary for stock trading platform

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US-based cryptocurrency exchange FTX will acquire Embed Financial Technologies as part of a deal aimed at “boosting” the company’s stock offering.

In an announcement on Tuesday, FTX US said it would buy Embed Financial Technologies and its subsidiary, clearing firm Embed Clearing, for an undisclosed amount “pending normal closing conditions and regulatory approval are met.” The deal came on the heels of the crypto company’s announcement in May that it would launch its stock trading platform, with FTX Stocks partnering with Embed Clearing to “execute, liquidate and hold” users’ accounts and trades.

According to US FTX President Brett Harrison, the acquisition of the clearing company will provide the technology and infrastructure that facilitates the offering of shares on the cryptocurrency exchange. The FTX Stocks platform has been beta testing for select clients in the US since May, with the exchange reporting on Tuesday it will be available to all local clients sometime in the summer.

Embed Clearing is a member of the Financial Industry Regulatory Authority, the Depository Corporation, the National Securities Clearing Corporation, Nasdaq and the Investors Exchange. In addition to Embed, FTX US acquired crypto derivatives platform LedgerX in August 2021 as part of a move to offer options and futures contracts on Bitcoin (BTC) and Ether (ETH). FTX CEO Sam Bankman-Fred said the exchange will continue to hire new employees, unlike crypto firms including Coinbase, Crypto.com and Gemini, all of which have announced staff cuts.

Related: FTX plans to acquire crypto exchange Bitvo as part of its move to the Canadian market

News of the acquisition came after FTX raised $400 million in a funding round in January to reach an $8 billion valuation. BlockFi also announced Tuesday that it has signed a deal with parent company FTX to secure a $250 million revolving credit facility.

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