Exclusive: Apex Clearing CEO Says Brokers Like Robinhood 'Wouldn't Exist' Without The Digital Custodian

Bill Capuzzi is the CEO of APEX Clearing, a provider of digital clearing, custodial services, real-time crypto solutions, fractional share-trading and other services to online brokers.

The company describes itself as the "fintech for fintechs," as it makes it possible for new investors to access the market in ways that were never possible before. 

Capuzzi was a guest on Benzinga's "Power Hour" YouTube show this week to talk about the company's outlook.

Apex Born To Operate Different: Apex started in 2012 to provide a platform for disruptors and innovators and lower the barriers of entry for brokers like Robinhood and Motif to gain share in the investment universe, among others, Capuzzi said.

Apex does all the "work behind the scenes" and the "things that others, frankly, won't," the CEO said. 

Years after its founding, Apex is now ready to become a public company via a SPAC deal. Apex Clearing will merge with Northern Star Investment Corp II NSTB and will trade on the NYSE under the ticker "APX."

The SPAC route offered Apex a more efficient and faster path toward becoming a public company, the company's CEO said. 

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Apex Unworried By Self-Clearing: There is "no reason" for brokers to opt against Apex's services and embrace an internal self-clearing system, Capuzzi said.

Brokers teaming up with Apex represents the "perfect marriage," as it allows Apex's customers to focus exclusively on the customer experience, he said. 

Not only is it "incredibly hard" to copy what Apex does, but a company like Robinhood "wouldn't exist" if it weren't for Apex, Capuzzi said. 

"For folks that try to replicate Apex, it just doesn't make sense."

Apex 'Ready' For T+1 Settlement: Every transaction in our day-to-day life is instant, and Apex is on a mission to at least speed up the outdated T+3 settlement period, the CEO said. 

What this means is an investor who sells shares on Monday won't see their money for three days, he said. 

The industry is in need of a change to at least T+1, and this would represent a great opportunity for Apex and play to its strength, Capuzzi said. 

"We are ready for it." 

Posted In: FintechInterviewApex ClearingBill CapuzziPower HourRobinhoodSPACSPACs
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