- FTX launches tokenized equities, enabling crypto traders to get their hands on stocks like Netflix and Facebook.
- A significant part of FTX’s audience comes from China, while US citizens won’t have access to the platform.
Share this article
One of the leading crypto exchanges by trading volume, FTX, has partnered with European financial companies CM Equity AG and Digital Assets AG to enable tokenized equity trading.
The platform’s users will have access to top stocks, including Apple, Amazon, and Tesla, along with the popular indices, such as the S&P 500. The US, along with some other jurisdictions, won’t get access to the offering.
With about $1.5 billion trading volume, the exchange is the industry’s six-most popular trading venue, attracting a large audience of traders. However, this demographic has had difficulty accessing the traditional stock market, according to the exchange’s CEO, Sam Bankman-Fried.
Notably, a large portion of FTX’s user base comes from China, which may concern American regulators, considering the ongoing political frictions.
CM Equity AG will hold the traded equities, while the tokens will work like depositary receipts or ETFs. If a trader wants to hold an actual stock, they will need to do it through CM Equity AG.
An important advantage of the tokenized securities is that the platform allows fractional ownership. Fractional ownership allows retail traders to make smaller deposits. Moreover, traders won’t have to pay for custody; FTX will only charge trading fees.
Merging crypto and traditional markets have been a focus for many startups in the space. For example, the decentralized derivatives platform Synthetix provides access to traditional equities like NIKKEI and FTSE. However, unlike FTX, the platform doesn’t provide ownership of the underlying assets.
Although the FTX offering has some regulatory risks, it’s a significant step in building the crypto space’s credibility.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article