FTX Makes Strategic Investment In IEX
April 05, 2022 - US regulated crypto-exchange FTX US today announced it has entered into an agreement to make a strategic investment in IEX Group, Inc., operator of the U.S. regulated national stock exchange, Investors' Exchange LLC . Through this investment, the two companies will work together to establish a clear, simple, and transparent market structure for buying, selling, and trading digital asset securities. The deal is expected to close next month, subject to customary closing conditions and regulatory approval.
Since its inception, FTX US has worked closely alongside regulators to set up an exchange that meets retail and institutional investors' crypto asset trading needs in a regulatory compliant manner. IEX will build upon the Company's existing market structure and regulatory principles to safeguard the best interests of investors and the public at large as the digital asset securities market emerges and grows to reach its full potential for U.S. participants.
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."
Since its launch as an alternative trading system in 2013 through the subsequent approval to operate a U.S. regulated stock exchange three years later, no entity has inspired more structural, cutting-edge innovation in equity market structure than IEX. IEX Exchange was the first to secure regulatory approval to operate with novel design features focused on investor protection, such as the Speed Bump and Signal, and it accomplished this through consistent engagement with investors, the financial community, and regulators.
"To unlock its full potential, the crypto and digital asset industry needs to engage with regulators and truly scale what has been built," said CEO and Co-Founder of IEX, Brad Katsuyama. "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 U.S. market should be the largest player in digital assets globally and we believe that this partnership will help facilitate that."
In addition to the strategic investment, FTX and IEX will share more information in the coming weeks about how this partnership will manifest and help broaden investor participation in the digital asset securities market. The companies plan to introduce an initiative that invites all investors to join the conversation about the future of market structure for digital asset securities.
The terms of the investment have not been disclosed.
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