Cryptocurrency exchange FTX is investing hundreds of millions of dollars in leading digital asset lender BlockFi as well as acquiring equity clearing firm Embed.
FTX CEO Sam Bankman-Fried explained on Twitter why the exchange saw BlockFi as a good investment opportunity during the cryptocurrency market downturn.
“Today we are pumping $250 million into BlockFi and partnering with them so they can navigate the market from a position of strength.
BlockFi has careful risk management and great leadership.
Thus, they successfully eliminated at-risk counterparties preemptively.
BlockFi client assets are properly managed, no debt/risk of 3AC, Celsius, etc.
And going forward, we’re excited to partner with BlockFi to deliver industry-leading products.
We take our duty to protect the digital asset ecosystem and its customers seriously.”
In a separate press release, FTX.US announced the purchase of Embed to enhance its FTX Stocks equity trading platform.
According to the announcement, the new acquisition of FTX will allow the company to provide white-label brokerage services to other companies, apps and users of FTX Stocks.
FTX.US President Brett Harrison says the purchase aligns with FTX’s goal of becoming a comprehensive investment app.
“As I mentioned when we launched FTX Stocks, our new equity and ETF trading platform, our goal at FTX is to provide a comprehensive trading application that spans all asset classes.