In a press release today, cryptocurrency exchange FTX announced its new venture, uncharted territory for its competitors.
With the introduction of regulated stock trading on its platform, FTX will implement the feature for users of the US arm of the FTX.US exchange.
X Crypto Shares
Combining cryptocurrency and stock trading is not a new attempt, as Binance pioneered this industry in a unique way last year. Instead of bringing U.S. stocks directly to the exchange, Binance introduced crypto assets linked to the value of stocks such as Tesla, Apple, and Coinbase.
However, after the exchange began to come under pressure from regulators around the world, Binance stopped offering this service to Investors. Unlike Binance, FTX will not offer crypto tokens that track stock prices, but will directly provide regulated US stocks.
As an affiliated broker-dealer registered with the SEC and a member of the FINRA / SIPC, FTX will offer these services through FTX Capital Markets. Commenting on the launch, FTX US President Brett Harrison said:
“Our goal is to offer our clients a holistic investment service across all asset classes. With the launch of FTX Stocks, we have created a single integrated platform that allows retail investors to easily trade cryptocurrencies, NFTs and traditional equity offers through a transparent and intuitive user interface. "
Stock trading on the exchange, which is expected to be available in the coming months, will be completely commission free. Additionally, FTX US will allow its clients to fund their accounts with the USD Coin (USDC) stablecoin,
This will be a huge opportunity for the exchange to emerge as a leading player in the cryptocurrency industry and potentially the stock trading industry.
FTT on the charts
While the exchange is making great strides, its native token, FTT, hasn't been particularly impressive in the past few days. After a drop of 25,27% during the week of the May 5th crash, FTT managed to recover 10,46%, but the same was invalidated after the price fell 7,63%.
As a result, FTT has failed to exit the bearish zone it has been in since the first week of April, nor to mark a bullish crossover over the same period, despite repeated attempts. Therefore, the expansion of FTX's operations could potentially positively affect the price of FTT as well.