Casey Wagner

<div id="highlights-block_634d8a3e9091f" class="highlights">
 <ul>
 <li>FTX Trading, FTX US and SBF are all targets of a state regulator investigation</li>
 <li>Regulators note confusion between FTX Trading and FTX US offerings in the filing</li>
 </ul>
 
</div>



The Texas State Securities Board is investigating FTX affiliate FTX US over alleged unregistered securities offerings, the regulator revealed Monday.



The state regulator claimed in the filing that FTX US’s yield-bearing account offerings are classified as unregistered securities. Texas authorities compared FTX US’ offering, which gives users up to <a href="https://twitter.com/BrettHarrison88/status/1417578618243387392?s=20&amp;t=4KbCU_zVvzFcFSu_kBOBqw" target="_blank" rel="noreferrer noopener">8% annual percentage yield</a> on their first $10,000 investment, to <a href="https://cms.blockworks.co/voyager-to-liquidate-assets-at-auction/" target="_blank" rel="noreferrer noopener">now-bankrupt crypto lender Voyager Digital</a>’s product.&nbsp;



“FTX US…may be offering unregistered securities in the form of yield-bearing accounts to residents of the United States,” a state <a href="https://cases.stretto.com/public/x193/11753/PLEADINGS/1175310142280000000134.pdf" target="_blank" rel="noreferrer noopener">filing</a> stated. “These products appear similar to the yield-bearing depository accounts offered by Voyager Digital LTD et al., and the Enforcement Division is now investigating FTX Trading, FTX US, and their principals, including Sam Bankman-Fried.”&nbsp;



In the filing, a state regulator claims that yield-earning accounts were offered to a US resident. The regulator claims that US residents are directed to use the FTX Trading app, even though these services are not available in the US.&nbsp;



<a href="https://cms.blockworks.co/brett-harrison-leaving-ftx-us-moving-into-advisory-role/" target="_blank" rel="noreferrer noopener">Former FTX US President Brett Harrison</a> confirmed in July 2021 that the exchange’s yield offerings were available to any user that has access to FTX or FTX US.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">How this works: -earn 8% APY on first $10k, 5% APY on everything above that -you can earn on any fiat or crypto -yield is rewarded hourly and you can withdraw at any time -available in every FTX US and FTX jurisdiction -available on @blockfolio app for now, more to come later <a href="https://t.co/IGlEmyt7Od">https://t.co/IGlEmyt7Od</a>&mdash; Brett Harrison (@BrettHarrison88) <a href="https://twitter.com/BrettHarrison88/status/1417578618243387392?ref_src=twsrc%5Etfw">July 20, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



“We have been in talks with the Texas state regulator for a while,&#8221; a spokesperson from FTX said. &#8220;We have an active application for a license which has been pending, and believe we are operating fully within the bounds of what we can do in the interim. We look forward to continue working with Texas.&#8221; 



Given that FTX Trading is headquartered in the Bahamas and incorporated in Antigua and Barbuda and is not available in the US, it is unclear how much authority the state regulator may have.&nbsp;



State regulators also pointed to the exchange’s current registrations in the filing, noting that FTX.US is not currently registered as a money transmitter with the Texas Department of Banking nor is it registered as a securities dealer with the Texas State Securities Board.&nbsp;



“FTX Trading and FTX US may not be fully disclosing all known material facts to clients prior to opening accounts and earning yield, thereby possibly engaging in fraud and/or making offers containing statements that are materially misleading or otherwise likely to deceive the public,” the filing added.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Texas State Securities Board Investigating FTX US, Sam Bankman-Fried

Bessie Liu

<div id="highlights-block_6333258a5f323" class="highlights">
 <ul>
 <li>FTX has been actively acquiring crypto startups during the bear market</li>
 <li>Harrison plans to remain in the cryptocurrency space, working to remove barriers of entry to the industry</li>
 </ul>
 
</div>



Brett Harrison is stepping down from his position as president of FTX US, he <a href="https://twitter.com/BrettHarrison88/status/1574782901748727809" target="_blank" rel="noreferrer noopener">announced</a> on Twitter Tuesday.


<div class="wp-block-image">
<figure class="alignright size-thumbnail"><img loading="lazy" decoding="async" width="150" height="150" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Brett-Harrison-FTX-US-Headshot-edited-150x150.jpeg" alt="Brett Harrison, FTX.US President, on the US GAAP audit" class="wp-image-11023" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Brett-Harrison-FTX-US-Headshot-edited-150x150.jpeg?w=150 150w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Brett-Harrison-FTX-US-Headshot-edited-150x150.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Brett-Harrison-FTX-US-Headshot-edited-150x150.jpeg?w=257 257w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Brett-Harrison-FTX-US-Headshot-edited-150x150.jpeg?w=261 261w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Brett-Harrison-FTX-US-Headshot-edited-150x150.jpeg?w=219 219w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Brett-Harrison-FTX-US-Headshot-edited-150x150.jpeg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Brett-Harrison-FTX-US-Headshot-edited-150x150.jpeg?w=408 408w" sizes="(max-width: 150px) 100vw, 150px" /><figcaption>Brett Harrison, former president of FTX US</figcaption></figure></div>


Founded by billionaire Sam Bankman-Fried, FTX is one of the largest centralized cryptocurrency exchanges.



Over the past year, FTX’s growth <a href="https://cms.blockworks.co/ftx-revenue-exploded-1000-to-beyond-1b-last-year-report/" target="_blank" rel="noreferrer noopener">surged by 1,000%</a>, with revenue reportedly jumping from $89 million to $1.02 billion in 2021.&nbsp;



It is no surprise that the company has been actively acquiring crypto startups that have been under threat in the beat market — scoring discounted deals, including acquiring crypto lender BlockFi for a maximum of <a href="https://cms.blockworks.co/ftx-reaches-deal-to-acquire-blockfi-for-up-to-240m/" target="_blank" rel="noreferrer noopener">$240 million</a> in July, and Voyager Digital’s assets <a href="https://cms.blockworks.co/ftx-us-wins-voyager-digital-asset-auction-for-1-4b/" target="_blank" rel="noreferrer noopener">for $1.4 billion</a> on Monday.&nbsp;



“I have deep gratitude for my experiences at FTX in the last year and a half,” Harrison <a href="https://twitter.com/Brett_FTX/status/1574782901748727809?s=20&amp;t=09gF3LzRHZxu04o5xjyBzg" target="_blank" rel="noreferrer noopener">tweeted</a>. “I don’t doubt my experiences in this role will be among the most cherished of my career.”



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">1/ An announcement: I’m stepping down as President of <a href="https://twitter.com/FTX_Official?ref_src=twsrc%5Etfw">@FTX_Official</a>. Over the next few months I’ll be transferring my responsibilities and moving into an advisory role at the company.&mdash; Brett Harrison (@BrettHarrison88) <a href="https://twitter.com/BrettHarrison88/status/1574782901748727809?ref_src=twsrc%5Etfw">September 27, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Harrison joined FTX in May 2021 after serving as the head of semi-systematic technology at Citadel Securities for almost two years.



“This industry is at a number of crossroads. The one that matters most to me, as a financial technologist, is the intersection of the arrival of larger market participants, and the increasing fragmentation and technological complexity of the market’s landscape,” Harrison tweeted.



“The technological frictions that will occur at that intersection, and how effectively they’re reduced, will be a critical factor in determining the future growth and stability of crypto markets: their liquidity, their capitalization, their resilience, their utility,” he said.



Harrison will remain in the crypto space and work to make the industry more accessible, removing barriers in both centralized and decentralized markets.



According to Bankman-Fried’s latest tweet, Harrison will be moving to an advisory role in the industry.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Really grateful to work with <a href="https://twitter.com/zachdex?ref_src=twsrc%5Etfw">@zachdex</a>, <a href="https://twitter.com/_Ryne_Miller?ref_src=twsrc%5Etfw">@_Ryne_Miller</a>, and others to push forward in the US; and a heartfelt goodbye to @Brett_FTX as he transitions to an advisor and FTX US transitions to its Miami HQ! Being agile and coordinated is a core value&#8211;it&#39;ll be great to be together.&mdash; SBF (@SBF_FTX) <a href="https://twitter.com/SBF_FTX/status/1574795975474008067?ref_src=twsrc%5Etfw">September 27, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



“I can’t wait to share more about what I’m doing next. Until then, I’ll be assisting Sam and the team with this transition to ensure FTX ends the year with all its characteristic momentum,” he tweeted.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Brett Harrison Leaving FTX US, Moving Into Advisory Role

Sebastian Sinclair

<div id="highlights-block_6332a54a6e9ba" class="highlights">
 <ul>
 <li>FTX US’s parent West Realm Shires has scooped up bankrupt lender Voyager’s crypto assets valued at roughly $1.4 billion in an auction bid</li>
 <li>Some $1.31 billion of the bid’s value is taken at the current market rate with the option to be priced at a future date</li>
 </ul>
 
</div>



The owner and operator of FTX US has scooped up assets belonging to bankrupt crypto lender Voyager Digital at an auction estimated to be worth more than $1.4 billion.



According to a <a href="https://www.investvoyager.com/pressreleases/voyager-completes-successful-auction-and-announces-agreement-for-ftx-to-acquire-its-assets" target="_blank" rel="noreferrer noopener">statement</a> on Monday, FTX US’s parent company West Realm Shires’ bid is valued at $1.422 billion.



That’s comprised of fair market value for all of Voyager’s crypto, which is expected to be priced at a future date. Current market prices peg that amount at roughly $1.31 billion.



A further $111 million of incremental value will also be taken under additional consideration. Its assets will become available once Voyager has concluded its Chapter 11 bankruptcy proceedings.



Blockworks attempted to contact both FTX and Voyager to understand how much, in total, West Realm Shires paid for the crypto, but have yet to receive a response.



“Voyager received multiple bids contemplating sale and reorganization alternatives, held an auction and, based on the results of the auction, has determined that the sale transaction with FTX is the best alternative for Voyager stakeholders,” the company said in its statement.



Voyager’s <a href="https://cms.blockworks.co/voyager-digital-issues-3ac-notice-of-default-on-around-665-million-loan/" target="_blank" rel="noreferrer noopener">claims against defunct hedge fund</a> Three Arrows Capital will remain with the bankruptcy estate, which may be distributed to the estate’s creditors should a recovery be made, the statement reads.



Citing sources familiar with the matter, former Wall Street Journal reporter Liz Hoffman tweeted the purchase price for FTX’s deal was roughly $50 million. Hoffman also said the deal could end up costing FTX double that amount if assets under management and other milestone targets were reached.



<h3 class="wp-block-heading">Making customers whole</h3>



It marks the first significant step for customers who have sought to recover their funds locked on Voyager’s platform ever since it made the decision to <a href="https://cms.blockworks.co/voyager-seeks-strategic-alternatives-following-pause-to-withdrawals/" target="_blank" rel="noreferrer noopener">halt withdrawals</a>, deposits and loyalty rewards in July.



Voyager become one of the first crypto companies to file for bankruptcy following crypto’s market rout in May —- spurred largely by the downfall of <a href="https://cms.blockworks.co/global-wanted-persons-notice-for-do-kwon-issued-report/" target="_blank" rel="noreferrer noopener">Do Kwon’s</a> Terra ecosystem.



FTX CEO Sam Bankman-Fried’s crypto trading firm Alameda Research is listed as Voyager’s biggest creditor, reportedly holding unsecured loans worth <a href="https://cms.blockworks.co/voyager-files-for-bankruptcy-days-after-freezing-withdrawals/" target="_blank" rel="noreferrer noopener">$75 million</a>.



Bankman-Fried previously offered Voyager customers the chance to withdraw their cash immediately through the provision of early-access liquidity.&nbsp;



Alameda/FTX proposed to buy Voyager’s remaining digital assets and loans, except for defaulted loans made to Three Arrows Capital.&nbsp;



But Voyager later <a href="https://cms.blockworks.co/voyager-lawyers-clash-with-bankman-fried-over-low-ball-buyout-offer/" target="_blank" rel="noreferrer noopener">dismissed</a> that offer as a “low-ball bid dressed up as a white knight rescue,” saying it would entertain only “serious” proposals.



<a href="https://cms.blockworks.co/voyager-to-liquidate-assets-at-auction/">The auction</a>, which became known to the public at the beginning of this month, took place on Sept. 13. The agreement between Voyager and FTX US will be presented for approval to the US Bankruptcy Court for the Southern District of New York on Oct. 19.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

FTX US Wins Voyager Digital Asset Auction for $1.4B

Ben Strack

<div id="highlights-block_62ffd9684598e" class="highlights">
 <ul>
 <li>Harrison tweeted on July 20 that “direct deposits from employers to FTX US are stored in individually FDIC-insured bank accounts in the users’ names”</li>
 <li>FTX is also falsely identified as an FDIC-insured crypto exchange on SmartAsset.com and CryptoSec.info, according to the agency</li>
 </ul>
 
</div>



The Federal Deposit Insurance Corporation (FDIC) has warned five companies, including crypto exchange FTX US, to stop making false and misleading statements about FDIC deposit insurance, the agency <a href="https://www.fdic.gov/news/press-releases/2022/pr22060.html" target="_blank" rel="noreferrer noopener">revealed Friday</a>.



<a href="https://www.fdic.gov/news/press-releases/2022/ftx-harrison-letter.pdf" target="_blank" rel="noreferrer noopener">In a letter sent to FTX US</a> on Thursday, the FDIC wrote that the firm’s president, Brett Harrison, said in a July 20 tweet that “direct deposits from employers to FTX US are stored in individually FDIC-insured bank accounts in the users’ names.” The tweet also states that “stocks are held in FDIC-insured and SIPC-insured brokerage accounts.”



“FTX US is not FDIC-insured, the FDIC does not insure any brokerage accounts, and FDIC insurance does not cover stocks or cryptocurrency,” the FDIC said in the letter.&nbsp;



It continued: “The FDIC only insures deposits held in insured banks and savings associations…and FDIC insurance only protects against losses caused by the failure of insured institutions. Accordingly, these statements are likely to mislead, and potentially harm consumers.”



FTX is further identified as an FDIC-insured crypto exchange on SmartAsset.com and CryptoSec.info, according to the FDIC.&nbsp;



Harrison <a href="https://twitter.com/Brett_FTX/status/1560701320717369349" target="_blank" rel="noreferrer noopener">tweeted in response</a> to the letter Friday, saying that he deleted the July 20 tweet, which he noted was written in response to questions regarding whether direct USD deposits from employers were held at insured banks.    



“We really didn’t mean to mislead anyone, and we didn’t suggest that FTX US itself, or that crypto/non-fiat assets, benefit from FDIC insurance,” Harrison added. “I hope this provides clarity on our intentions. Happy to work directly with the FDIC on these important topics.”



In addition to sending cease-and-desist letters to FTX US, CryptoSec.info and SmartAsset.com, the FDIC also issued notices to Cryptonews.com and FDICCrypto.com for similar alleged violations.&nbsp;



This is a developing story.



Updated on Aug. 19, 2022 at 3:01 pm ET.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

FDIC Accuses FTX US of Making Misleading Statements

<div id="highlights-block_62dafc032533b" class="highlights">
 <ul>
 <li>Voyager customers are being offered the opportunity to receive liquidity and an option to sign up for FTX</li>
 <li>Customers will be able to withdraw their cash immediately or use it to purchase digital assets on the FTX platform</li>
 </ul>
 
</div>



Customers of bankrupt crypto lender Voyager have been thrown a lifeline from digital assets exchange <a href="https://cms.blockworks.co/tag/ftx/" target="_blank" rel="noreferrer noopener">FTX</a>, offering to provide them with early-access liquidity.



Under a joint proposal between FTX and West Realm Shires — owner and operator of <a href="https://cms.blockworks.co/tag/ftx-us/" target="_blank" rel="noreferrer noopener">FTX US</a> and Alameda Ventures — <a href="https://cms.blockworks.co/tag/voyager/" target="_blank" rel="noreferrer noopener">Voyager</a> customers will be able to claim a portion of their funds that were frozen more than three weeks ago. It&#8217;s not yet clear how much each customer will be able to withdrawal. 



Customers will be required to start a new account with FTX to receive a cash balance funded by an early distribution on a portion of their bankruptcy claims, according to a statement on Friday. 



Customers will also be able to withdraw their cash immediately or use it to purchase digital assets on the FTX platform, the exchange said.



It marks the latest aggressive move for the exchange — which has <a href="https://cms.blockworks.co/sam-bankman-fried-out-to-win-whole-crypto-market-early-ftx-backer-says/" target="_blank" rel="noreferrer noopener">swooped in</a> to assist ailing crypto firms caught up in the recent lending and liquidity crisis impacting the industry at large.



The exchange recently reached a&nbsp;<a href="https://cms.blockworks.co/ftx-reaches-deal-to-acquire-blockfi-for-up-to-240m/" target="_blank" rel="noreferrer noopener">deal</a>&nbsp;to acquire troubled lender&nbsp;<a href="https://cms.blockworks.co/tag/blockfi/" target="_blank" rel="noreferrer noopener">BlockFi</a>&nbsp;for up to $240 million and&nbsp;<a href="https://cms.blockworks.co/bankman-fried-belies-bear-bids-for-bitvo/" target="_blank" rel="noreferrer noopener">agreed to purchase Bitvo</a>&nbsp;and Embed Financial earlier in June.&nbsp;



Its move also comes as Alameda Research — founded by FTX CEO <a href="https://cms.blockworks.co/tag/sam-bankman-fried/" target="_blank" rel="noreferrer noopener">Sam Bankman-Fried</a> — <a href="https://cms.blockworks.co/voyager-to-borrow-500m-from-alameda-amid-insolvency-rumors/" target="_blank" rel="noreferrer noopener">loaned $500 million</a> to Voyager last month in a bid to help ease its market woes and alleviate financial stress.



&#8220;Voyager&#8217;s customers did not choose to be bankruptcy investors holding unsecured claims,&#8221; Bankman-Fried said in the statement. &#8220;The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business — a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks.&#8221;



Earlier this month, Voyager filed for a <a href="https://cms.blockworks.co/voyager-files-for-bankruptcy-days-after-freezing-withdrawals/" target="_blank" rel="noreferrer noopener">Chapter 11 bankruptcy</a> less than a week after suspending trading and withdrawals. Voyager became the industry&#8217;s latest lender caught up by the collapse of Singapore-based <a href="https://cms.blockworks.co/3ac-files-for-bankruptcy-as-co-founders-location-unknown/" target="_blank" rel="noreferrer noopener">Three Arrows Capital</a>.



The exchange expects to conclude its offer to Voyager customers by early August which will be subject to the requirements of the Chapter 11 bankruptcy proceedings and court approval.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

FTX Offers to Bail Out Voyager Customers in Joint Liquidity Proposal

<div id="highlights-block_628bca0cc69fc" class="highlights">
 <ul>
 <li>FTX has spoken to Webull, Apex Clearing and Public.com, CNBC reported</li>
 <li>Company CEO Sam Bankman-Fried previously told Blockworks he expects a wave of consolidation in the crypto space amid the bear market</li>
 </ul>
 
</div>



Crypto exchange FTX has reportedly spoken with stock trading startups it may be interested in acquiring, as the company has revealed plans to broaden its offerings to investors.&nbsp;



Sources familiar with the discussions <a href="https://www.cnbc.com/2022/05/23/crypto-exchange-ftx-quietly-shops-for-brokerage-start-ups-amid-move-into-stock-trading-sources-say.html" target="_blank" rel="noreferrer noopener">told CNBC</a> that the Bahamas-based firm has spoken with <a href="https://www.webull.com/" target="_blank" rel="noreferrer noopener">Webull</a>, <a href="https://www.apexclearing.com/" target="_blank" rel="noreferrer noopener">Apex Clearing</a> and <a href="https://public.com/" target="_blank" rel="noreferrer noopener">Public.com</a> in recent months.



A spokesperson for FTX declined to comment.



FTX’s US affiliate <a href="https://cms.blockworks.co/ftx-us-launches-zero-commission-stock-trading/" target="_blank" rel="noreferrer noopener">unveiled its stock platform last week</a>, allowing retail investors to trade stocks and ETFs alongside crypto and non-fungible tokens (NFTs). The retail brokerage accounts can be funded with traditional dollar deposit methods, as well as with fiat-backed stablecoins.



“On any given day, a person might want to buy some bitcoin or they might want to buy some Tesla,” FTX US President Brett Harrison told Blockworks at the time. “They’re not going to want to open two different accounts…and move their savings around between two different applications to do this sort of investing.”



The reported conversations with brokerage companies also follow FTX CEO Sam Bankman-Fried <a href="https://cms.blockworks.co/ftxs-sam-bankman-fried-spots-opportunity-in-troubled-markets/" target="_blank" rel="noreferrer noopener">buying a 7.6% stake in investing platform Robinhood</a>.



Bankman-Fried told Blockworks last month that he predicts a wave of mergers and acquisitions amid the bear market. He noted that “it wouldn’t be totally shocking” for FTX to acquire some “shrinking” exchanges, noting that the company is always evaluating opportunities.



FTX US <a href="https://cms.blockworks.co/ftx-us-brings-crypto-derivatives-to-users-with-ledgerx-acquisition/" target="_blank" rel="noreferrer noopener">last year bought</a> digital currency futures and options exchange LedgerX, in a move to bring crypto derivatives to its US user base. More recently, it bought a stake in stock exchange operator IEX Group in an effort to establish a simple and transparent market structure for buying and selling digital asset securities.



FTX also <a href="https://cms.blockworks.co/ftx-acquires-liquid-group-expanding-presence-in-japan/" target="_blank" rel="noreferrer noopener">revealed in February</a> it was set to acquire fintech firm Liquid Group in a bid to navigate Japan’s crypto exchange laws.



Dan Keeler contributed to this story.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

FTX Reportedly Seeks Acquisitions in Brokerage Space

<div id="highlights-block_628660a831e1b" class="highlights">
 <ul>
 <li>Currently in private beta stage, FTX Stocks will be available to residents in all 50 states</li>
 <li>Allows retail brokerage accounts to be funded with fiat-backed stablecoins</li>
 </ul>
 
</div>



FTX US unveiled its stock platform on Thursday, allowing retail investors to trade traditional exchange-listed stocks and ETFs alongside crypto and non-fungible tokens (NFTs).&nbsp;



The company — the US affiliate of Bahamas-based crypto exchange FTX — will now offer trading and investing in hundreds of US stocks and ETFs within its existing crypto trading app.



<a href="https://ftx.us/" target="_blank" rel="noreferrer noopener">FTX US</a> President Brett Harrison noted the company’s growing retail user base and the demand for diversified investing.



“On any given day, a person might want to buy some bitcoin or they might want to buy some Tesla,” he told Blockworks. “They’re not going to want to open two different accounts…and move their savings around between two different applications to do this sort of investing.”



Called FTX Stocks, the offering will initially route all orders through Nasdaq in an effort to provide transparent trade execution and fair pricing, according to the company. It is set to begin in a private beta phase for select US customers chosen from a waitlist.



FTX Stocks will have no-fee brokerage accounts, zero-commission trading, and free market and company data. The company is not requiring minimum customer balances.&nbsp;



The launch also marks the first time that retail brokerage accounts can be funded with fiat-backed stablecoins, as well as with traditional USD deposit methods such as wire transfers and credit card deposits, the company said.



FTX US is currently offering a majority of stocks in the S&amp;P 500 and Nasdaq 100, as well as several ETFs, Harrison said, adding that the company would seek to “rapidly expand” that universe over time.



“We have a theory that we feel is pretty well substantiated by the success of Robinhood, for example, that by having more options in one app, we can help attract and retain our customers and give them a better experience,” Harrison said. FTX’s founder and CEO, Sam Bankman-Fried, <a href="https://cms.blockworks.co/ftxs-sam-bankman-fried-spots-opportunity-in-troubled-markets/" target="_blank" rel="noreferrer noopener">acquired a 7.6% stake</a> in Robinhood last week. 



The launch comes as FTX US has focused on financial inclusion beyond crypto. The company recently selected Chicago as its headquarters and <a href="https://cms.blockworks.co/ftx-rolls-out-program-to-support-underbanked-chicago-communities/" target="_blank" rel="noreferrer noopener">announced a program</a> focused on supporting the city’s underbanked communities.



As part of its partnership with nonprofit organization Equity And Transformation, FTX US’s one-year program offers $500 per month in supplemental income, financial literacy education, a zero-fee bank account and a Visa debit card to 100 Chicagoans.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

FTX US Launches Zero-commission Stock Trading

<div id="highlights-block_61eb26b3cc7e7" class="highlights">
 <ul>
 <li>FTX US Derivatives, formerly known as LedgerX, is hoping to appeal to the CFTC with its new board of directors </li>
 <li>The CFTC has a list of requirements an exchange must meet before offering margin products</li>
 </ul>
 
</div>



Cryptocurrency exchange FTX.US has added a board of directors as the company vies for regulatory approval to extend leverage to derivatives traders. 



The board is a prerequisite of the CFTC permitting the exchange to offer leveraged trading, Zach Dexter, CEO of FTX US Derivatives, told Blockworks.&nbsp;



“It&#8217;s actually a requirement under the Code of Federal Regulations in the Commodity Exchange Act that a designated contract market or derivatives clearing organization must have people who have experience in risk management,” Dexter said. “This could include people who&#8217;ve dealt with liquidations for commodity derivatives products like oil futures or corn futures, or people with experience with bitcoin options, etc.”&nbsp;



The CFTC also requires exchanges looking to offer margin products to provide a risk model. That model must be able to calculate the initial amount of margin that needs to be posted, the amount of variation margin — or responses to price movements —needed and when liquidation occurs.&nbsp;



In October, FTX US acquired CFTC-regulated futures and options exchange LedgerX in a move that looked to expand the exchange’s trading offerings. The company has since been rebranded to FTX US Derivatives.&nbsp;



Margin trading allows traders to leverage their positions using funds borrowed from the exchange. It&#8217;s a high-risk strategy that magnifies rewards and losses alike.



“In crypto currently, the only direct-to-retail margin trading that is happening is on overseas exchanges that are either less regulated or in a still developing regulatory environment,” Dexter said. “But here in the US, if you want to offer margin trading direct-to-retail, you&#8217;ve got to have the licenses from the CFTC.”&nbsp;



Cryptocurrency exchange Kraken was <a href="https://www.cftc.gov/PressRoom/PressReleases/8433-21">fined $1.12 million</a> in September 2021 for failing to register its margin products with the CFTC. Coinbase Pro <a href="https://blog.coinbase.com/coinbase-pro-disables-margin-trading-42f5862f8a66">disabled its margin</a> trading services in November 2020 in response to growing regulatory concerns.&nbsp;



Providing it meets regulatory requirements, according to Dexter, FTX US is hoping to offer retail and institutional clients alike access to “a reasonable amount of margin.”



“You&#8217;ve got to have a back tested mathematical model reviewed by independent third party validators, it’s very serious stuff,” Dexter said.&nbsp;



The regulatory process, while lengthy, benefits investors, Dexter said. International exchanges do not have to meet the same guidelines, which may lead to riskier practices, he said.&nbsp;



Alongside Dexter, board members include Keisha Bell, Managing Director, head of diverse talent management and advancement, DTCC; Bryan Bishop, CTO at Avanti Financial Group; Joe Keefer, trader at Grapefruit Trading; Jerome Kemp, president of Baton Systems; Lucas Moskowitz, vice president and deputy general counsel at Robinhood; Bart Smith, global head of strategy for digital assets for the Susquehanna International Group of Companies and Mark Wetjen, head of policy and regulatory strategy at FTX US. 



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Crypto Exchange FTX US Vying for CFTC Sign-off on Margin Trades

Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
 <ul>
 <li>Bitwise released its outlook on DeFi, calling for Amazon-like disruption to the current financial system</li>
 <li>Coinbase Cloud aims to be the Amazon Web Services of digital asset infrastructure</li>
 </ul>
 
</div>



Bitwise released its outlook on decentralized finance (DeFi) in <a href="https://s3.amazonaws.com/static.bitwiseinvestments.com/Research/Decentralized-Finance-DeFi-A-Primer-for-Professional-Investors-11-16-2021.pdf" target="_blank" rel="noreferrer noopener">a recently published report</a>.



DeFi provides anyone in the world with an internet connection and smartphone low-cost, high-speed, and instantaneously settled financial markets.



Borrowing and lending protocols, as well as decentralized exchanges (DEXs), currently make up a vast majority of DeFi activity, as regulation around the space remains largely uncertain.



Coinbase Cloud aims to be the Amazon Web Services of crypto by supporting digital asset infrastructure through its subsidiary, Bison Trails.



Ethereum NFTs are officially live on FTX US, <a href="https://twitter.com/Brett_FTXUS/status/1466075424010604547?s=20" target="_blank" rel="noreferrer noopener">according</a> to the company&#8217;s president, Brett Harrison.



<h3 class="wp-block-heading">Latest in Macro:</h3>



<ul class="wp-block-list"><li>S&amp;P 500: 4,513, -1.18%</li><li>NASDAQ: 15,254, -1.83%</li><li>Gold: $1,784, +0.46%</li><li>WTI Crude Oil: $65.48, -1.06%</li><li>10-Year Treasury: 1.405%, -0.036%</li></ul>



<h3 class="wp-block-heading">Latest in Crypto:</h3>



<ul class="wp-block-list"><li>BTC: $56,666, -.63%</li><li>ETH: $4,546, -1.54%</li><li>ETH/BTC: 0.0800, -1.51%</li><li>BTC.D: 41.73%, +0.28%</li></ul>



<h3 class="wp-block-heading">DeFi versus TradFi</h3>



<a href="https://bitwiseinvestments.com" target="_blank" rel="noreferrer noopener">Bitwise</a> released a report titled <a href="https://s3.amazonaws.com/static.bitwiseinvestments.com/Research/Decentralized-Finance-DeFi-A-Primer-for-Professional-Investors-11-16-2021.pdf" target="_blank" rel="noreferrer noopener">&#8216;Decentralized Finance (DeFi): A Primer for Professional Investors&#8217;</a>, which notes that though many industries have been reshaped by digital technologies, finance has not. Though there have been improvements to the user experience through apps like Venmo or Cash App, it adds, the underlying infrastructure behind payments has remained stagnant for decades.



&#8220;DeFi replaces traditional financial intermediaries with software: self-executing &#8216;smart contracts,&#8217; secured by blockchain technology, allow innovators to reimagine everything from lending to trading, asset management, and more,&#8221; the executive summary of the <a href="https://s3.amazonaws.com/static.bitwiseinvestments.com/Research/Decentralized-Finance-DeFi-A-Primer-for-Professional-Investors-11-16-2021.pdf" target="_blank" rel="noreferrer noopener">report</a> states.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="488" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Defi-1024x488.jpg" alt="" class="wp-image-12005" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Defi-1024x488.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Defi-1024x488.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Defi-1024x488.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Defi-1024x488.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Defi-1024x488.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Defi-1024x488.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Defi-1024x488.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Defi-1024x488.jpg?w=1119 1119w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Bitwise</figcaption></figure>



<h3 class="wp-block-heading">DeFi advantages</h3>



<ul class="wp-block-list"><li>Lower cost and speed<ul><li>DeFi services are able to cut out the costs of middlemen (employees, offices, transaction fees, etc.) because they utilize public infrastructure (blockchains) that execute smart contracts on behalf of the users.</li></ul></li><li>Composability<ul><li>Innovation occurs much faster in DeFi because problems solved for one protocol may be applied to a different set of problems. </li></ul></li><li>Two-sided markets<ul><li>Just as Uber aligns the supply of willing drivers to the demand of potential passengers needing to get from point A to point B, DeFi connects liquidity providers looking for yield to traders willing to pay swap fees on an automated market maker, such as <a href="https://app.uniswap.org/#/swap" target="_blank" rel="noreferrer noopener">Uniswap</a>.</li></ul></li></ul>



There are nearly 4 million users and more than <a href="https://s3.amazonaws.com/static.bitwiseinvestments.com/Research/Decentralized-Finance-DeFi-A-Primer-for-Professional-Investors-11-16-2021.pdf" target="_blank" rel="noreferrer noopener">$200 billion of assets</a> in DeFi protocols today. The main difference between most applications consumers use today and DeFi is the lack of a centralized authority behind them. This ensures that anyone with an internet connection is free to use any application they desire.



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="945" height="867" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/defi-eco.jpg" alt="" class="wp-image-12007" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/defi-eco.jpg?w=945 945w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/defi-eco.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/defi-eco.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/defi-eco.jpg?w=280 280w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/defi-eco.jpg?w=284 284w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/defi-eco.jpg?w=239 239w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/defi-eco.jpg?w=80 80w" sizes="(max-width: 945px) 100vw, 945px" /><figcaption>Source: Bitwise</figcaption></figure></div>



<h3 class="wp-block-heading">Primary applications today</h3>



Of the roughly <a href="https://defillama.com" target="_blank" rel="noreferrer noopener">$280 billion of total value locked</a> in DeFi protocols, a vast majority of the liquidity revolves around two product markets: borrowing and lending protocols, and decentralized exchanges, according to DeFi Llama data.



<h4 class="wp-block-heading">Borrowing and Lending</h4>



<a href="https://app.aave.com/#/markets" target="_blank" rel="noreferrer noopener">Aave</a>, which boasts more than $16 billion of liquidity, enables participants to lend out their assets in exchange for passive income. Borrowers can lock up collateral to take out loans at various annualized rates.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="823" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/aave-1024x823.jpg" alt="" class="wp-image-12013" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/aave-1024x823.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/aave-1024x823.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/aave-1024x823.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/aave-1024x823.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/aave-1024x823.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/aave-1024x823.jpg?w=320 320w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/aave-1024x823.jpg?w=325 325w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/aave-1024x823.jpg?w=272 272w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/aave-1024x823.jpg?w=80 80w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Bitwise</figcaption></figure>



<h4 class="wp-block-heading">DEXs</h4>



Network participants are able to provide liquidity via asset pairs to a DEX in exchange for rewards that come in the form of swap fees generated and liquidity provider incentives. DEXs are similar to a brokerage account or the New York Stock Exchange, except they are run by self-executing smart contracts.



Today Uniswap, one of the largest DEXs built on top of Ethereum, has trading volumes that rival those seen by centralized crypto exchanges such as FTX and Coinbase.



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="570" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/uni-1024x570.jpg" alt="" class="wp-image-12011" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/uni-1024x570.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/uni-1024x570.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/uni-1024x570.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/uni-1024x570.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/uni-1024x570.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/uni-1024x570.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/uni-1024x570.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/uni-1024x570.jpg?w=1460 1460w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Bitwise</figcaption></figure></div>



<h3 class="wp-block-heading">Threats</h3>



&#8220;JPMorgan, the world&#8217;s largest bank, boasts a market cap of [about] $508 billion, more than 3x the combined value of all DeFi apps combined,&#8221; Bitwise Research Analyst Ryan Rassmusan <a href="https://twitter.com/RasterlyRock/status/1461406941004115969?s=20" target="_blank" rel="noreferrer noopener">said</a> in a Nov. 18 Twitter post. &#8220;DeFi is tiny compared to the size of the industry that it aims to disrupt: [less than] 1% of the $24 [trillion] legacy finance market.&#8221;



The President&#8217;s Working Group on Financial Markets, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency recently released a <a href="https://home.treasury.gov/system/files/136/StableCoinReport_Nov1_508.pdf" target="_blank" rel="noreferrer noopener">report</a> on stablecoins and the need to regulate them. Lyn Alden, founder of Lyn Alden Investment Strategy, <a href="https://twitter.com/LynAldenContact/status/1465375630556553228?s=20" target="_blank" rel="noreferrer noopener">recently</a> pointed out that the fate of DeFi is in large part decided by centralized stablecoin issuers such as Tether and Circle, which are subject to the US&#8217;s jurisdiction.



The Fed <a href="https://www.federalreserve.gov/newsevents/pressreleases/bcreg20211123a.htm" target="_blank" rel="noreferrer noopener">stated</a> earlier this week that it would issue guidance for crypto regulation in the first half of 2022, which could prove to have a negative effect on the digital asset space during a time that coincides with <a href="https://cms.blockworks.co/powell-we-can-retire-the-term-transitory-inflation/" target="_blank" rel="noreferrer noopener">tighter monetary policy</a>.



SEC Chairman Gary Gensler <a href="https://cms.blockworks.co/gensler-says-centralized-regulation-is-path-for-crypto/" target="_blank" rel="noreferrer noopener">said today</a> that further enforcement against DeFi protocols is coming sooner rather than later.



<h3 class="wp-block-heading">Coinbase Cloud</h3>



&#8220;We&#8217;ve deployed 60,000 nodes that run your favourite crypto applications without interruptions and support over $30 [billion] assets staked to secure the world&#8217;s leading blockchain networks,&#8221; <a href="https://twitter.com/maraschmiedt/status/1466067585968054273?s=21">wrote</a> Mara Schmiedt, business and corporate development manager at Coinbase. 



Coinbase is aiming to become the Amazon Web Services of crypto, Coinbase Chief Product Officer Surojit Chatterjee told <a href="https://www.forbes.com/sites/stevenehrlich/2021/12/01/inside-coinbases-budding-plan-to-become-the-aws-of-crypto/?sh=224091c7415c" target="_blank" rel="noreferrer noopener">Forbes</a>, making decentralized applications easier to launch through their product line at <a href="https://bisontrails.co">Bison Trails</a>. While there are other competitors in the infrastructure space, no other exchange in the US boasts more than 73 million verified users to leverage.



Ali Yahya, a general partner at a16z, compared Coinbase&#8217;s full suite of offerings to &#8220;just read/write infrastructure, which is what Alchemy does,&#8221; according to the Forbes article.



&#8220;All of the other products and services that Coinbase uniquely can bring to developers such as trading, fiat on-ramps, we offer a single place for people to build the full end-to-end experience that really doesn&#8217;t exist today,” he added.



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



Ethereum NFTs are officially live on FTX US, <a href="https://twitter.com/Brett_FTXUS/status/1466075424010604547?s=20" target="_blank" rel="noreferrer noopener">according</a> to Brett Harrison, the company&#8217;s president. Industry participants are unsure how the increased competition in secondary marketplaces for NFTs will affect OpenSea&#8217;s historically dominant marketshare.



Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found below:



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="329" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.32-PM-1024x329.png" alt="" class="wp-image-12015" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.32-PM-1024x329.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.32-PM-1024x329.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.32-PM-1024x329.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.32-PM-1024x329.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.32-PM-1024x329.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.32-PM-1024x329.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.32-PM-1024x329.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.32-PM-1024x329.png?w=1227 1227w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="285" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.41-PM-1024x285.png" alt="" class="wp-image-12016" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.41-PM-1024x285.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.41-PM-1024x285.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.41-PM-1024x285.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.41-PM-1024x285.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.41-PM-1024x285.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.41-PM-1024x285.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.41-PM-1024x285.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-01-at-3.49.41-PM-1024x285.png?w=1200 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.



<hr class="wp-block-separator"/>



Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.



<hr class="wp-block-separator"/>

Bitwise Releases DeFi Outlook: Markets Wrap

<div id="highlights-block_61942c1bb283a" class="highlights">
 <ul>
 <li>Ohtani, who joins FTX brand ambassadors Tom Brady, Steph Curry, David Ortiz and others, will be compensated in equity and cryptocurrencies</li>
 <li>FTX US president attributed business’s Q3 growth in part to sports partnerships</li>
 </ul>
 
</div>



Crypto exchange FTX has landed a deal with another high-profile celebrity as it looks to continue pushing its brand awareness within the sports sphere. 



The company announced a long-term partnership with Shohei Ohtani, an All-Star pitcher, designated hitter and outfielder for the Los Angeles Angels. He will serve as a spokesperson for FTX to elevate the company’s brand and increase awareness of the company&#8217;s platform and digital assets more generally.&nbsp;



Ohtani will be compensated in equity and cryptocurrencies. FTX will also make an annual contribution to various charities on Ohtani’s behalf.



The baseball star this year became the first player in Major League Baseball history to be an All-Star as both a pitcher and a hitter. Ohtani was also the first pitcher to participate in the Home Run Derby.



FTX had inked a deal with Major League Baseball earlier this year, which included the league’s umpires wearing an FTX.US logo patch on their uniforms.&nbsp;



The company also partnered with NFL quarterback and seven-time Super Bowl champion Tom Brady in June, and more recently announced similar alliances with two-time NBA Most Valuable Player <a href="https://cms.blockworks.co/ftx-names-stephen-curry-a-global-ambassador/" target="_blank" rel="noreferrer noopener">Steph Curry</a>, NFL Running Back Aaron Jones, and David Ortiz, a retired slugger who won three World Series as a designated hitter for the Boston Red Sox.   



Brett Harrison, president of FTX affiliate FTX US, <a href="https://cms.blockworks.co/ftx-us-reports-512-increase-in-average-daily-volume-in-q3/" target="_blank" rel="noreferrer noopener">previously told Blockworks</a> that sports partnerships forged by its parent companies have helped spur dramatic growth for the business in recent months.&nbsp;&nbsp;



FTX US reported an average daily volume of roughly $360 million in the third quarter, a 512% increase from the prior quarter. Its user count increased by 52% quarter over quarter, though the company declined to share how many users it has.



Other crypto companies have looked to the sports world to boost brand awareness and educate the public about digital assets.&nbsp;



Voyager Digital <a href="https://cms.blockworks.co/voyager-digital-partners-with-dallas-mavericks/" target="_blank" rel="noreferrer noopener">partnered with the Dallas Mavericks</a> last month, and NYDIG announced a deal on Tuesday to become the official bitcoin services partner and platform of the Houston Rockets.&nbsp;



The Rockets will work with NYDIG to expand the bitcoin ecosystem through access, educational programming, and community support initiatives, the organization said in a statement. NYDIG, which is paying for the sponsorship in bitcoin, will receive brand exposure across the team&#8217;s social, digital and in-arena platforms.



<hr class="wp-block-separator"/>



Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.



<hr class="wp-block-separator"/>