In the United States, cryptocurrency exchange FTX has purportedly begun commission-free stock and ETF trading. However, the service will initially be limited to a small number of customers, with a complete launch of services including stocks, ETFs, cryptocurrencies, futures, and other assets to follow in a few months.
FTX will also let users to deposit monies into their accounts using USDC. The transaction follows the recent acquisition of a 7.6% share in Robinhood by FTX founder Sam Bankman-Fried. The organization wants to be a one-stop shop for financial services.
According to the Wall Street Journal on May 19, one of the top crypto exchanges, FTX, has moved into a broader financial services sector by starting to provide stocks and ETFs trading for US users.
The FTX.US mobile app will allow users to trade stocks. Furthermore, the firm plans to provide trading in hundreds of US-listed firms as well as exchange-traded funds.
They eventually hope to provide an all-in-one financial services app. However, we will not route client orders to high-speed traders in return for cash, which is known as payment for order flow.
Following the trade in GameStop and other meme stocks last year, politicians and regulators have strengthened their scrutiny of the paying for order flow practice. Since then, the stock market has dropped over 50%.
As a result, FTX prioritizes establishing itself in the regulated financial services business in the United States, as shifting away from the payment for order flow approach would cost it money.
According to Harrison, the corporation has been working on it since January, and a wait list for the new service was established in February. Other firms, such as Robinhood, Block’s Cash App, and Public.com, have integrated stock and cryptocurrency trading. FTX, on the other hand, is the first cryptocurrency exchange to access regular financial markets.
Under the direction of Sam Bankman-Fried, FTX is exploding this year. In January, the crypto exchange located in the Bahamas upped its worth to $32 billion. Australia, the United Arab Emirates, and Europe were also added. Sam Bankman-Fried purchased a 7.6% interest in Robinhood for investment purposes last week.