After cryptocurrencies, FTX attacks stocks
The cryptocurrency trading platform FTX opens its services to the stock market for its American customers. It will therefore be possible, for FTX.US users initially, to trade Nasdaq quotations commission free :
Crypto exchange https://t.co/tUryXJeM24 to offer zero-commission stock trading https://t.co/WBVQE7hN8G
—FTX (@FTX_Official) May 20, 2022
This novelty is driven by a bias that investors would want access to all of their assets in one placeas Bret Harrisson, the president of FTX.US describes it:
“If they want to invest in stocks, they won’t want to have to split their savings between two different apps, or move money between two different accounts. They wish they could […] invest in multiple asset classes from a single app and experience. »
In order to make this possible, the platform will use the services of Embed, a company specialized in API connections, which allows clients’ orders to be sent directly to market places. It is also not to be excluded that these new services also integrate other financial vehicles like futures in the future.
An FTX Stocks account can be topped up not only with classic fiat currencies by transfer, but also thanks to collateralized stablecoins like the USDC.
👉 To go further – Find our tutorial on the FTX platform
A trend caught on the wrong foot
For a little over a year, we have become accustomed to seeing traditional finance companies opening up to the cryptocurrency market, but this diversification of FTX comes precisely to place against the trend. Here we have a company originating from the blockchain universe, which is opening up to traditional finance.
The creation of Sam Bankman-Fried (SBF) thinks big and take a risky betall the more so with an attractive call price, consisting of free trading fees.
As Bret Harrisson indeed points out, FTX is aware that it will not be profitable for it to bear the transaction costs of the shares. But this serves a long-term vision that aims to retain as many users as possible, through a rich catalog of services:
“To begin with, this is not going to be a profitable business for us. Our goal is to be able to add this additional service for our customers to strengthen our existing business. »
As we learned last week that SBF became the third largest shareholder of Robinhood, some rumors are starting to appear, following these two news, concerning a possible merger of these companies. However, this possibility is speculation at present. Yet, the fact is that FTX is now adopting a global strategy, vis-à-vis investing in its various forms.
👉 On the same subject – FTX plans $1 billion in charitable donations and launches its first print ad campaign
Source: CNBC
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About the Author : Vincent Mayor
I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
All articles by Vincent Maire.