The US subsidiary of leading crypto exchange FTX has already tried several other approaches like meme coins and then jpegs.
World’s second biggest crypto exchange founded by Sam Bankman-Fried, FTX Trading Limited has been known for its extreme and bold approaches towards expansion of its operations. Recently the trading empire announced that it is going to begin the functionality of testing stock trading for several users in the United States on Thursday.
However the company has not provided a particular timeline for its rollout in border terms. President of the trading exchange Brett Harrison stated that their sole aim is to offer supportive investing services for their customers belonging to all across the different asset classes. The stocks are a recent approach of the FTX subsidiary of the United States that already tried the meme coins first and the jpegs too.
Launching of this feature comes as the aggressive approaches of FTX in order to push into the ecosystem of traditional finance. The explosion of trading platforms across the United States has brought courage to the trading firm all the way through its roots as a foreigner crypto derivatives exchange in order to challenge the quite closely guarded governing rules in commodities markets.
These efforts that are being examined currently by the United States Commodity Futures Trading Commission (CFTC) have potential for long term. However the stock trading is yet another sign that FTX US is upto grow more interest in the crowd of general investors than exclusively gamblers of crypto assets.
There will be no commissions or trading fees that FTX US is going to charge for keeping aligned with the low cost brokerage model that Robinhood is riding to fame. It will also not monetize the orders of traders by selling the high frequency traders flow which is a controversial practice called a payment for order flow where Robinhood has been criticized for this quite often.
Recently Bankman Fried disclosed that he purchased about 7% of Robinhood in buying stocks. The exchange has also plans to let the funds of its customers have their accounts in the USDC stablecoin. Effectively this means that the similar go between assets for such crypto traders can enter into the stock market.
Source: https://www.thecoinrepublic.com/2022/05/20/what-are-the-plans-of-ftx-us-while-stepping-into-stock-trading/