FTX is reportedly scouting for brokerage firms in preparation for the launch of stock trading

Crypto derivatives exchange and NFT platform FTX is reportedly scouting brokerage startups as part of its recently announced plans to expand support for stock trading.

The company announced on the 4th that its US subsidiary FTX.US will launch commission-free stock trading through its app and allow users to fund their accounts with fiat-backed stablecoins.

According to a CNBC report on May 23, the firm has held private meetings with at least three startup brokerage firms over the past few months about potential acquisitions. The report quoted a source as saying, "As the deal negotiations are confidential, they requested anonymity."

The three companies specifically listed are Webull, Apex Clearing and Public.com. Neither FTX nor all parties have commented on these rumors.

All of these firms are registered with the Financial Industry Regulatory Authority (FINRA) and are members of the Securities Investor Protection Corporation (SIPC), suggesting they have good relations with hawkish government agencies such as the Securities and Exchange Commission (SEC).

Firms registered with FINRA can trade stocks on behalf of clients and can also provide investment advice while becoming a member of SIPC, meaning investors are financially protected if the company goes bankrupt.

At this stage, it is unclear whether FTX is primarily eyeing startups to support its equity-focused plans, or is also considering larger long-term acquisitions.

Earlier this month, as FTX founder and CEO Sam Bankman-Fried filed a document with the SEC showing that he raised his stake in the popular U.S. stock retail trading platform Robinhood to 7.6% at the end of April, worth about $648.2 million, speculation began to swirl about such a deal.

According to Yahoo Finance, Robinhood is currently worth about $8.4 billion, meaning FTX would need to deploy a significant amount of capital to acquire the company.

That being said, SBF has said in the past that an ambitious acquisition like Goldman Sachs is "not out of the question" for FTX if it continues on its strong upward growth trajectory.

However, the SEC filing doesn't offer many clues, as it outlines that SBF does not plan to be actively involved in Robinhood, instead merely describing it as an "attractive investment" for HODL.

"The filer intends to hold the shares by way of investment and does not currently intend to take any action to change or affect control of the issuer, nor does it intend to engage in any transaction with that purpose or effect," the filing said.

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