Crypto exchange FTX.US has announced a strategic investment in IEX Group, a national licensed exchange.
FTX takes a stake in the IEX exchange
The New York-based company, which gained stock exchange status in 2016, announced on Tuesday that FTX has made a strategic investment in the company. The investment collaboration will help IEX, which has struggled to gain market share from US equity giants such as the New York Stock Exchange and Nasdaq, to develop a crypto market structure.
The size of FTX’s investment was not disclosed, but the deal is subject to regulatory approval under the so-called HSR Act, suggesting it will be over $100 million. . The transaction is expected to close in May, subject to customary closing conditions and regulatory approvals. At this time, it is unclear what specific actions the two companies will take together.
How can IEX Support FTX?
IEX was created in 2012 to mitigate the impact of high frequency trading. Similar to FTX, IEX entered the US equity trading market as an outsider and also wanted to offer market data feeds at zero cost, which is currently common in the crypto industry. With both companies aligned on their vision, IEX could help FTX.US launch its equity trading services, which the company has been planning for some time.
Sam Bankman-Fried, the CEO of FTX, argued for greater regulation of cryptocurrencies in the United States, saying it will benefit the industry and investors. IEX could also help FTX and the crypto industry in general bridge the gap between traditional financial regulations and cryptocurrencies, as it has more experience with regulators than most crypto companies.