According to Bloomberg, FTX is reportedly considering a deal to acquire Robinhood. The reports have had a significant impact on Robinhood’s share price as it is up 17.5%. Sam Bankman Fried’s crypto exchange is exploring several options for the possibility of acquiring US financial services firm Robinhood.
The sources are being kept anonymous because the decision to acquire Robinhood is internal and has not yet been made public.
Bloomberg stated no final decision has been made by FTX
According to Bloomberg’s details, FTX Robinhood has not provided a formal approach regarding the acquisition. According to the source, FTX has not yet made a final decision on this and there is a chance that the exchange will backtrack from the final deal.
According to the Securities and Exchange Commission, FTX CEO Sam Bankman-Fried has acquired a 7.6% stake in Robinhood. At the time of purchase, the deal was worth over $648 million. According to the SEC filing, the deal was considered an attractive investment by Bankman-Fried.
FTX has come forward to oppose Binance and Coinbase as a strong rival, even though the exchange does not provide its services to US citizens. But at the same time, FTX is one of the largest crypto exchanges in the world that offers spot trading and derivatives trading.
The growing adoption of Crypto during the pandemic and the introduction of crypto trading by Robinhood has attracted a large number of investors. The increased demand among the investors to get their hands on crypto has tempted major trading platforms to introduce crypto on their platforms.
Robinhood announced last month that it was launching a new web3 wallet. The wallet will include features such as trading and exchanging assets with no network fees, access to DeFi protocols, and an NFT marketplace. If deployed, it will be a strong competition for Metamask and coinbase wallet.