Crypto exchange FTX quietly shops for brokerage start-ups amid move into stock trading, sources say

Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, at the Bitcoin 2021 conference in Miami, Florida, on June 5, 2021.

FTX has been on the hunt to buy start-ups as the exchange expands into stocks and the CEO takes a stake in a start-up.

Sources who asked not to be named because the deal talks were confidential said the company approached at least three privately held trading start-ups. One source said that the discussions did not result in a term sheet.

Sources said that FTX has spoken to a number of companies in recent months. Webull, Apex and Public.com did not respond to CNBC's requests for comment. FTX did not reply to a comment request.

The move comes as investors hold more and more of thecryptocurrencies and as brokerage firms look to offer the assets under one roof. The business model of Robinhood has shifted away from just stocks and towards cryptocurrencies.

FTX said last week it would make a move into equities. Commission-free trading will be offered in the U.S. in an effort to acquire more customers.

The U.S. has largest retail base in the world and you don't want to have to split into two different apps to trade two different asset classes, according to the president of FTX U.S.

FTX has made investments in the space. IEX group is one of the largest stock exchange operators. FTX CEO Sam Bankman-Fried took a 7.6% stake in Robinhood in May, fueling speculation that the company may be looking at an acquisition. Since hitting their all-time high around the initial public offering last summer, the shares of Robinhood have plummeted.

While a regulatory filing said Bankman-Fried sees the company as an attractive investment with no plans to buy it or push changes, the paperwork raised some eyebrows. A 13D is used by activist investors. Passive investors usually file a 13G.

The founders may not approve of a takeover. The dual-class share structure gives the CEO and co-founder more voting power.

The space is expected to get more consolidation with some private valuations getting cheaper and some fintech stocks falling from their all-time highs.

Many in the industry are flush with cash and strategic acquisitions can accelerate growth, so we expect demand will remain strong, according to the director of financial technology research at JMP Securities.