- The Bahamas-based FTX crypto exchange was founded in 2019.
- FTX is set to offer stock trading services on its app starting Thursday with limited users.
- FTX aims to provide a commission-free stock trading service.
Crypto exchange FTX is all set to foray into the stock market on Thursday with a commission-free trading service for shares and exchange-traded funds (ETFs).
FTX is known for its cryptocurrency trading app for bitcoin, altcoins, etc.
WSJ reported that the exchange plans to launch the new service on Thursday for limited US users and intends to expand the service for everyone in the next few months. According to CoinDesk.com, customers can fund their brokerage account with the USDC stablecoin.
It is a significant step for the crypto exchange as its app will offer trading in other asset classes, including futures, on the same interface. Moreover, the use of USDC stablecoins for brokerage accounts would bridge the gap between crypto and stock market trading on its app.
Commenting on the new service, FTX US President Brett Harrison said, “What we eventually want to offer is an everything app for financial services.”
FTX intends to offer commission-free stock trading. It also said it would not monetize customer orders by selling ‘flow to high-speed traders for cash’. The payment for order flow is a controversial practice and came under the scrutiny of regulators last year.
The zero-commission or zero-fee trading may impact the exchange’s earnings, and it would need to rely on cryptos to subsidize the new service.
Last week, FTX co-founder and Chief Executive Sam Bankman-Fried bought a 7.6% stake in Robinhood Markets Inc., a financial services platform company.
The Bahamas-based FTX is one of the largest crypto exchanges and is on an expansion spree. In April, it partnered with IEX Group, owner of the regulated national stock exchange IEX to provide retail and institutional investors access to digital assets.
In March, FTX filed a proposal with the Commodity Futures Trading Commission (CFTC) for allowing it to sell leveraged crypto derivatives to retail investors.
The other crypto and stock trading apps are Robinhood, Public.com, and Cash App. The only difference is that these are originally stock trading apps that later started offering cryptos, while FTX originally offered crypto trading. FTT, the native token of FTX exchange, slid 2.29% on Thursday at 8:01 am ahead of the new service launch.
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