Startup Gets Backing to Create Clearing Firm for Equities

A new startup hopes to build a better clearing firm, a type of financial-market infrastructure business that drew scrutiny during the GameStop Corp. stock frenzy earlier this year.

Embedded Financial Technologies Inc. is a new custodian-and-clearing firm for equities and options founded by Michael Giles, who previously ran Cash App Investing LLC, a subsidiary of Square Inc. Its future customers would be able to integrate stock trading features into their mobile apps through Embedded’s APIs, or code that allows apps to communicate.