Apex Fintech revives IPO plans after failed $5B merger

Dallas-based Apex Fintech Solutions, a provider of custody and clearing services, has confidentially filed for an initial public offering (IPO), signaling a strategic move in an improving market environment.

Apex’s move to file for an IPO comes as investor sentiment shows signs of recovery from a period marked by high market volatility and rising interest rates. The company filed a draft registration statement with the Securities and Exchange Commission (SEC) but has not yet disclosed the number of shares or the pricing for the proposed offering.

Apex had previously planned a public debut in 2021 through a merger with Northern Star Investment Corp II, a special purpose acquisition company (SPAC), but the $4.7 billion deal was eventually called off. The company specializes in digital asset custody, clearing, trade execution, and other investor services. It boasts over $115 billion in assets under custody and roughly 220 clients, including prominent names like eToro, Betterment, SoFi, and Ally Financial.

Founded in 2012, Apex has carved a niche in providing digital clearing, custody, execution, and routing solutions to financial institutions.

Apex Fintech (formerly Apex Clearing) is a financial technology firm that offers clearing, digital custody services and fractional share trading, among others, to its clients. Their offering focuses on enhancing brokerage functions such as opening accounts and onboarding, moving money, deposits and withdrawals.

Apex also opens the door for its partners to include the crypto assets into their clients’ portfolios alongside traditional brokerage assets, which has been disjointed in the past. From a legal and regulatory standpoint, the platform offers compliant custody and trading services for clients in most US states.

The fintech company allows clients to open cryptocurrency accounts to buy and trade tokens. In their initial launch, Bitcoin, Bitcoin Cash, Ethereum, and Litecoin were the first cryptocurrencies Apex supported, with plans to add more coins based on demand.

Apex was the clearing house for no-commission stock app Robinhood until it launched its own clearing service. Apex was also reportedly bidding to provide PayPal with technology infrastructure to launch its stock-trading platform.