FTX.US, the U.S. arm of Sam Bankman-Fried’s cryptocurrency exchange FTX, has agreed to make a strategic investment in the group that operates the IEX Exchange. 

FTX and IEX said that the strategic partnership would include working together to build a venue for trading digital asset securities.

“What shape that takes will ultimately depend on what regulations require. The focus in the near-term is on engaging with regulators to move the industry forward as institutional investors need a regulatory structure in place before purchasing digital assets on behalf of their customers,” an FTX spokesperson told Decrypt. “IEX has a history of innovating in a highly regulated space and pushing the envelope where exchange design is concerned. The IEX Speed Bump is the best example.”

The speed bump consists of a 38-mile fiber optic cable that incoming trade orders to the exchange have to traverse. It’s enough to delay them by 350 microseconds and stop faster traders (and their algorithms) from executing trades before prices at the exchange have been updated. 

The speed bump renders the fractions of a second advantage that high-frequency traders leverage on other exchanges null and void.

“From the first conversation with Sam, it was clear to me that FTX and IEX were truly aligned on the future potential for digital assets and the unique roles our firms could play as partners in shaping market structure that benefits the end investor,” said IEX CEO and co-founder Brad Katsuyama. “We both see the regulators as important allies in providing a clear path forward and attaining the…


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