Some of the world’s most important stocks can now be traded against Bitcoin on FTX.
World-renowned crypto exchange FTX recently announced the launch of tokenized stock trading on its platform. The trading includes some of the world’s top stocks like Tesla, Apple, and Amazon, providing FTX clients with 24/7 stock trading against popular cryptocurrency Bitcoin and other stablecoins.
The newly-launched tokenized platform will also allow fractional stock trading. This is when investors buy stock in small bits, i.e., less than one share. This method of stock trading is quite important as it increases liquidity, especially for expensive stocks.
FTX, CM-Equity, and DAAG partnerships
To facilitate the smooth launch of this feature, FTX has entered into two strategic partnerships with CM-Equity and Digital Assets AG (DAAG). The platforms are based in Germany and Switzerland, respectively.
Speaking on the announcement, the CEO of FTX, Sam Bankman-Fried, revealed that the stock trading addition was based on popular demand. He also added that both CM-Equity and DAAG will help facilitate the smooth running of the platform.
According to reports, German-based CM-Equity will help with stock custody. Bankman-Fried also revealed that the firm will be in charge of all customer and trade compliance issues.
DAAG, on the other hand, was a major player in the planning and building of the tokenization platform. The firm will help to “tokenize financial DAAG.”
The crypto exchange FTX is calling its tokenized equity trading “a first of its kind” product. Bankman-Fried further added that these products will provide users with “unlimited creative potential to express their beliefs about the markets.”
The United States isn’t still fully receptive to the crypto space yet. With this in mind, FTX equity trading will be unavailable to users in the United States. Other restricted regions include Iran, North Korea, and Syria.
Interestingly, FTX isn’t the only crypto exchange to offer fractional equity trading. Top exchanges like Robinhood and Uphold, amongst others, offer the same service to their users.
In other news, Coinbase Custody disclosed in May that it would be providing custodian services for the FTX exchange token, FTT.
FTT token price
At the time of writing, FTT was down 0.2%. The token was trading at $3.42, with a market cap of $316,359,149 and a 24-hour trading volume of $3,334,482.
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