Crypto exchange FTX expands into US stock trading
FTX launches its US equities trading service, accepting payments in both stablecoins and US dollars.
FTX exchange is expanding into US equity trading with its subsidiary FTX US. FTX has launched its US equities trading service, accepting payments in Stablecoins and US dollars.
With this news, a select group of waitlisted US retail investors can fund their accounts with Stablecoins like USDC via the FTX US crypto exchange. FTX Chief Executive Sam Bankman-Fried released details of the news on his Twitter feed today:
1) Beta for stocks on FTX US opening today!https://t.co/y5FgA2Fw2y
— SBF (@SBF_FTX) May 19, 2022
The announcement comes a week after the Billionaire founder acquired a 7.6% stake in Robinhood. Shares of Robinhood Markets rose sharply by 23% last week after the FTX Chief revealed that it had taken a stake in the trading platform.
As said by Brett Harrison, FTX US President,
“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
Speaking of the move in an exclusive with the Wall Street Journal, he added,
“We would like to become the ‘everything exchange’ and the ‘everything app’ when it comes to financial services”
A new retail investment experience
Last week, Financial Times reported that several Wall Street brokers warned US regulators about FTX’s plans to automate risk management. The technology would radically disrupt traditional trading approaches. The FTX automated process could mean that computers would replace many functions currently performed by brokers.
The no-fee brokerage accounts and commissionless trading will be attractive to the ready-made retail crypto market, familiar with this kind of trading. Not only does it offer transparency, but it eliminates the need for many of the standard broker services offered in traditional investing experiences today.
Last week, FTX CEO Sam Bankman-Fried made the headlines for his critique of Bitcoin as a form of payment. In an interview with the Financial Times, he argued that the Bitcoin Network is not scalable, noting that Proof of stake networks are more energy efficient.
Earlier this year, FTX was valued at $32 billion after it raised $400 million in a Series C funding round.
From today, US clients that joined a waiting list in February will be able to buy stocks and exchange funds on the platform.