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Cryptocurrency exchange giant FTX.US has made a strategic investment in the regulated national stock exchange IEX Group.
Looking to continue to strengthen its place in global digital asset markets, FTX sees IEX as a way to improve the market structure for investors in a compliant and trusted manner, according to a statement Tuesday.
The size of FTX’s investment has not been disclosed, but an FTX spokesperson told CoinDesk it will become a “major” shareholder of IEX. The deal is expected to close in May, subject to customary terms and regulatory approvals.
“With this investment, we are aligned with one of the most trusted and innovative companies in the stock markets,” FTX chief executive Sam Bankman-Fried said in the statement. He added that the two companies will “work together to further shape the crypto market structure and work closely with regulators, enabling institutions around the world to seamlessly enter the market.”
IEX Group operates Investors Exchange LLC, which rose to prominence with Katsuyama after appearing in Michael Lewis’ 2014 bestselling book “Flash Boys,” which described the impact of high-frequency trading on financial markets.
Katsuyama said IEX is well aligned with FTX and its vision to help investors, while also working closely with regulators to scale the digital asset industry. “The US market should be the largest player in digital assets globally and we believe this partnership will help facilitate that,” he said in the release.
Bankman-Fried is a proponent of tighter crypto regulation in the US, saying it would be healthy for the market and investors. FTX’s derivatives unit recently asked the Commodity Futures Trading Commission to allow the trading platform to clear margin derivatives trades directly for clients.
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