By
Chimamanda U. Martha
April 19th, 2024
The two players will work together in building a market structure for crypto securities that are in compliance with the regulatory framework.
On Tuesday, April 5, crypto exchange FTX US confirmed its “strategic investment” in IEX Group, the operator of the US-regulated national stock exchange. This partnership seeks to build a transparent market structure for buying, selling, and trading digital assets.
As per the current plans, the deal will close by the next month subject to regulatory approval. As FTX seeks to expand its market presence, it has been working closely with the regulators. FTX seeks to build a platform that facilitates retail and institutional engagement with crypto assets.
Post this partnership, IEX will build upon the company’s existing market structure. The goal would be to safeguard investors’ interests by following regulatory principles. Speaking of this development, Sam Bankman-Fried, CEO of FTX and FTX US, commented:
“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. I’ve long respected Brad’s vision for IEX to be an exchange that caters to the needs of the investor and treats them fairly – part of the reason why we’ve operated similarly at FTX. As a result, we will collaborate on the further establishment of crypto market structure and work closely with regulators, allowing institutions around the world to enter the marketplace seamlessly.”
FTX US and IEX: Increasing Investor Participation in Crypto
Post the strategic investment, both FTX and IEX will share additional information in the coming weeks about how to broaden investor participation in the crypto securities market. The two players will seek investor participation in building the future of crypto securities and market structure. IEX CEO Brad Katsuyama said:
“To unlock its full potential, the crypto and digital asset industry needs to engage with regulators and truly scale what has been built. From the first conversation with Sam, it was clear to me that FTX and IEX were truly aligned on the future potential for digital assets and the unique roles our firms could play as partners in shaping market structure that benefits the end investor. We both see the regulators as important allies in providing a clear path forward and attaining the highest possible standards for investor protection. The US market should be the largest player in digital assets globally and we believe that this partnership will help facilitate that.”
In this crypto market bull run, FTX has managed to make fast expansion worldwide. It European wing is also in discussions with UK’s regulatory body to set up regulated operations in the country.