The Cryptocurrency investors will soon be able to trade tokenized shares of some of the world’s largest companies like Apple Inc. and Amazon.com Inc. with the latest product of the FTX exchange.
Cryptocurrency exchange FTX, in partnership with German-based financial firm CM Equity AG and Switzerland-based Digital Assets AG, is offering a service they call “stocks. fractional stocks – fractional stocks, with quite a few cryptocurrency and stock trading pairs posted on the FTX platform – according to news from Bloomberg. Other notable names include Facebook Inc., Netflix Inc., Tesla Inc. and the SPDR S&P 500 trading fund.
The move is part of a campaign to widely promote the integration of the crypto industry with traditional financial assets, to popularize the list of securitized tokens. Digital assets have contributed to the marketing of poorly liquid capital assets such as real estate to works of art. Institutional interest in this type of crypto asset has soared very high this year with Bitcoin’s value almost tripling since March, reaching its highest level since January 2018.
This is the first time that major securities in the traditional US financial market are tokenized and traded as a crypto asset through crypto, helping many investors to access the stock market. with the world’s largest companies over. Even these tokenized securities have embraced many of the features of crypto, such as being tradable 24/7, according to the FTX exchange. With this new type of product, investors on the FTX platform will surely have more options to build a portfolio that suits their style, but with it, users will also have to update. update new knowledge to be able to keep pace with this new and old market type.
Sam Bankman-Fried, CEO of FTX, said these tokens were created to target investors who find it difficult or inconvenient to access stocks through traditional markets.
“For many people, the process of approaching and investing in stocks is extremely complicated,” Sam said in an interview. “There are many ways to do it, but most of the procedures are very old and cumbersome. By giving more people access to these investment channels, we can also enrich our portfolio of tradable things. “
The tokens will act like a receipt of margin or ETF, Bankman-Fried said. “Investors can trade these tokens on FTX, but exchanging them for securities will have to go through CM Equity, the company that actually holds the securities,” he said.
At the moment, FTX only supports spot trading and is leaving the possibility to announce derivative products in the future. Supported assets include:
- Tesla stock
- Amazon stock
- Apple stock
- Facebook shares
- Stock Google
An FTX spokesperson said there will be a fee for the transaction service but there will be no other management fees to preserve the tokens. Registration starts on Thursday, and the exchange will be up and running shortly after. Residents of the US and other restricted jurisdictions will not be allowed to trade these tokens.
Who can trade this asset on FTX?
In order to participate in the transaction, users need to perform KYC level 2. In addition, FTX users need to fully satisfy KYC requirements from CM-Equity. Users cannot trade FTX under bans.
To start KYC registration and trading, click on the link here
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