FTX subsidiary FTX US is investing in Investors Exchange(IEX), a national stock exchange in the United States to launch digital securities.
FTX US stated on Tuesday that it has inked an agreement to make a strategic investment in IEX Group, the operator of the IEX, in order to jointly build a market structure for buying, selling, and trading digital asset securities.
Subject to usual closing conditions and regulatory approval, IEX and FTX US anticipate closing the agreement in May 2022.
About the investment
The new investment will offer services to both retail and institutional clients. IEX intends to put in place its current market structure and regulatory standards.
The collaboration with IEX, according to FTX and FTX US CEO Bankman-Fried, would assist in the construction of the crypto market structure and coordination with authorities. He expressed his support for IEX CEO Brad Katsuyama’s concept of fair exchange, saying:
“Investing in IEX created a tremendous opportunity for FTX US. With this investment, we’re aligned with one of the most trusted and innovative companies in equities markets.”
Through interaction with authorities, IEX co-founder and CEO Katsuyama stated that the cooperation with FTX intends to assist the United States to become the largest player in digital assets globally. He stated, “
“To unlock its full potential, the crypto and digital asset industry need to engage with regulators and truly scale what has been built […] We both see the regulators as important allies in providing a clear path forward and attaining the highest possible standards for investor protection.”
In addition to the strategic investment, FTX and IEX want to launch a new project that will invite all investors to participate in a discussion with regulators about the future of the market structure for digital asset securities. More information on the project will be released at a later date, according to the companies.
Both FTX and FTX US have recently made significant investments in traditional finance. Last month, FTX Ventures, FTX’s venture capital arm, invested $100 million in Dave, a mobile banking software, in exchange for FTX US collaborating with Dave for crypto payments.
FTX has also been in talks to invest in the Indian gaming firm Mobile Premier League, according to a Sunday report by TechCrunch, as it prepares to make another push in the Web3 industry.
