The bitcoin exchange FTX US is going old school with the launch of its new stock-trading service for a limited number of users in the country. The new offering will be made available through FTX Capital Markets, a FINRA member broker-dealer.
The website intends to expand its functionality to all US customers in the next few months, according to the official release. Users will be able to trade and invest in hundreds of US exchange-listed assets, including common stocks and exchange-traded funds, through FTX Stocks (ETFs).
To begin, all orders will be routed through Nasdaq in order to guarantee “transparent trade execution and fair pricing.” There will be no commissions on stock trading, and FTX Stocks will not be compensated for order flow. A few securities will also be offered for fractional share trading. FTX US will accept “fiat-backed stablecoins” like USDC as payment for stock purchases.
FTX’s latest growth demonstrates the company’s desire to not only attract crypto investors, but also traditional financial investors, even if it means entering a more tightly regulated market. The fundamental aim, according to FTX US President Brett Harrison, is to provide users with every investment service under the sun.
Its move into the stock market comes only days after FTX CEO Sam Bankman-Fried was discovered to have purchased a 7.6% interest in online trading platform Robinhood. The executive clarified that he has no intention of influencing the latter’s management or direction but that he sees the ownership as an investment.
The Commodities Futures Trading Commission (CFTC) has received a formal request from FTX US to amend its existing non-intermediated model for cryptocurrency derivatives, allowing the platform to bypass the financial organisations that now facilitate such trading. The application is currently being reviewed by the authorities.
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