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FTX is discussing internally how to buy the app-based brokerage and Robinhood has not received a formal takeover approach, the report said.
Robinhood, shares in which rose 14% in afternoon trading, declined to comment. The company has a market capitalization of nearly $7 billion as of Friday’s closing price.
FTX did not immediately respond to a Reuters request for comment.
Last month, Bankman-Fried had revealed a 7.6% stake in Robinhood but said he did not have any intention of taking control of the retail-trading platform. Robinhood’s dual-class shares currently give its founders control of 64% of the voting shares outstanding.
Trading volumes at the brokerage have eased from last year’s frenetic pace when retail investors used the platform to pump money into shares of so-called meme stocks including GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC).
That, along with a sell-off in high-growth technology stocks, has driven a near 50% drop in Robinhood shares this year.
