Sam Bankman-Fried cryptocurrency exchange FTX continues to invest heavily in traditional finance, and FTX US US subsidiary invests in Investors Exchange (IEX), the US national stock exchange.
FTX US has signed a strategic investment agreement with IEX Group, the operator of IEX, to jointly create a market structure for buying, selling and trading digital asset securities, Cointelegraph reported on Tuesday.
IEX and FTX US expect to close the deal in May 2022, subject to normal closing conditions and regulatory approval.
The new collaboration aims to provide services to retail and institutional investors. IEX plans to implement the existing market structure and regulatory principles.
Bankman-Fried, CEO of FTX and FTX USA, noted that the collaboration with IEX will further build the structure of the cryptocurrency market and cooperate with regulators. He noted that he has long been a fan of IEX CEO Brad Katsuyama’s idea of a fair exchange, adding:
“Investing in IEX has created a huge opportunity for FTX US. With this investment, we have joined one of the most reliable and innovative companies in the stock markets.”
IEX co-founder and CEO Katsuyama emphasized that the partnership with FTX aims to help the US become the biggest player in the digital asset world through dialogue with regulators. He said:
“To reach its full potential, the crypto and digital asset industry must engage with regulators and truly scale what has been created. […] We both see regulators as important allies in ensuring a clear path forward and achieving the highest possible standards. to protect investors.”
In addition to strategic investments, FTX and IEX also plan to introduce a new initiative that will invite all investors to join the conversation with regulators about the future structure of the digital asset securities market. The companies plan to provide more details about the project at a later date.
Both FTX and FTX US have been heavily investing in traditional finance lately. Last month, FTX’s venture arm, FTX Ventures, invested $100 million in Dave’s mobile banking app with FTX US in partnership with Dave for crypto payments.
Related: Cryptocurrency exchange FTX receives a license in Dubai to open a local headquarters
According to a TechCrunch report Sunday, FTX is also in talks to invest in Indian gaming startup Mobile Premier League as it prepares to take another step into the Web3 sector.
Cointelegraph has reached out to FTX for more information and will update the article in anticipation of new information.