FTX Stocks will enable retail investors to fill their accounts with fiat-backed stablecoins, such as USD Coin, via the FTX US exchange.
Major crypto exchange FTX is stepping into equity trading with its United States-based subsidiary FTX US launching a stock trading platform.
The owner and operator of FTX US, West Realm Shires Services, announced the launch of FTX Stocks, a stock trading service available directly via the FTX US trading app.
The new platform will enable trading and investing in hundreds of U.S. exchange-listed shares, including common stocks and exchange-traded funds.
According to the statement, FTX Stocks will be the first platform ever to let retail investors fund accounts using fiat-backed stablecoins such as USD Coin (USDC). The option is an alternative to default U.S. dollar deposit methods such as wire transfers, credit card deposits, etc.
The FTX Stocks platform will first be accessible in a private beta phase to a limited number of U.S. clients. The service will route all orders via Nasdaq to guarantee transparent transaction execution and fair pricing.
Brett Harrison, president of FTX US, said that FTX Stocks would be a single, integrated platform for retail investors to trade crypto, NFTs, and conventional stock with a transparent and user-friendly interface. He noted an apparent market demand for new retail investing experience that provides “full order routing transparency” without requiring payment for order flow.
On Monday, FTX founder and CEO Sam Bankman-Fried criticised Bitcoin’s (BTC) viability as a payment network. He raised particular concern about the Bitcoin network’s mining consensus, stating that it is not scalable to handle millions of transactions.
As of May 2022, the CEO had over $650 million in the cryptocurrency-friendly stock trading application Robinhood shares.
