The US arm of the cryptocurrency exchange, FTX, is going old school with the launch of its new stock-trading service for a limited number of users in the country. The new offering is being released through FTX Capital Markets, which happens to be a FINRA member broker-dealer.
Push for Stock Trading
According to the official announcement, the platform plans to expand its functionality to all US users over the next months. FTX Stocks will enable users to trade and invest in hundreds of US exchange-listed securities, such as common stocks and exchange-traded funds (ETFs).
At first, the new platform will route all orders via Nasdaq in a bid to provide “transparent trade execution and fair pricing.” Stock trading will be commission-free, and FTX Stocks will not receive any payment for order flow. It will also make fractional share trading available in a handful of securities. FTX US will accept payment for stock purchases in “fiat-backed stablecoins” such as USDC.
FTX’s latest expansion highlights the company’s ambition to not only attract the crypto crowd but also to capture investors in traditional finance, even if it means entering a more strictly regulated space. The main idea, as FTX US President Brett Harrison explained, is to offer every investing service under the sun for its users.
“Our goal is to offer a holistic investing service for our customers across all asset classes. With the launch of FTX Stocks, we have created a single integrated platform for retail investors to easily trade crypto, NFTs, and traditional stock offerings through a transparent and intuitive user interface.”
Its equities foray comes days after it was revealed that FTX CEO Sam Bankman-Fried had bought a 7.6% stake in the online trading platform Robinhood. While clarifying that he has no intentions to influence the latter’s management or strategy, the exec said he is viewing the stake as an investment.
FTX US made a formal request with the Commodities Futures Trading Commission (CFTC) to modify its existing non-intermediated model for cryptocurrency derivatives, and allow the platform to circumvent the financial companies that currently enable such trades. The authorities are currently reviewing the application.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
Credit: Source link