Cryptocurrency exchange FTX may soon permit for formal stock trading along with its crypto services, the firm announced in a statement (through The Wall Street Journal).
The feature is presently available to a small number of users in the United States, but it will be expanded to more traders in the coming months.
FTX claims to offer commission-free trading on “hundreds of US exchange-listed securities,” including ordinary stocks and exchange-traded funds (ETFs). Customers will be able to deposit money into their accounts via credit cards, ACH transfers, or wire transfers.
FTX also has said to be the first exchange to allow users to make payments fiat-backed stablecoins like USDC into their accounts.
Although the price of stablecoins is not(theoretically) expected to vary as much as other digital currencies because they’re stuck to a currency or commodity, a recent downturn in the overall crypto market has left some stablecoins strapped for cash.
Ftx Intends To Route Orders Through The Nasdaq Exchange.
FTX aims on routing orders directly through to the Nasdaq exchange, rather than using the payment for order flow (PFOF) methods adopted by Robinhood as well as other exchanges.
PFOF includes brokerage firms getting compensation for trying to direct orders to financial markets, a process critics claim may pose a conflict of interest, as brokers also might want to direct orders to institutions that increase their profits. The training came under scrutiny regarding the GameStop stock spike which took place last year.
“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,” Brett Harrison, the US president of FTX said in a statement.
Robinhood, the Block-owned Cash App, as well as Public.com allow users start trading stock and crypto — putting FTX into the mix will let it compete directly with each platform.
Sam Bankman-Fried, the founder of FTX, announced earlier this month how he had purchased a 7.6% interest in Robinhood, making him the company’s third-largest shareholder.
Bankman-Fried stated in his 13D filing that he had no plans to buy the firm at this time, but as the Wall Street Journal points out, this sort of document is often filed by an investor wanting to buy more stock or execute a takeover.
