A prominent cryptocurrency exchange, FTX, is getting into the stock trading business. Soon, its users will be able to trade equities and exchange-traded funds on the platform.
Only A Few Users In The United States To Enjoy The Service
The Wall Street Journal reports that the firm Sam Bankman-Fried helped establish and serve as its Chief Executive Officer would provide access to only a selected group of people in the United States. It is uncertain if the option will be rolled out to all users later on.
“What we ultimately hope to be able to provide is an app that does everything related to financial services,” the President of FTX.US, Brett Harrison, stated.
FTX intends to provide commission-free stock trading, much like most of the big online brokerage companies in the United States.
According to Harrison, the contentious business practice of sending customers’ orders to high-speed traders in return for cash would no longer be implemented. Governments and regulators started probing payment for order volume after the frantic trading of GameStop Corp. and other meme stocks throughout the previous year.
Mr. Harrison made the first announcement that the cryptocurrency exchange was working on introducing stock trading in January. In February, FTX began accepting names for its waitlist.
Robinhood, Public.com, and Cash App are just a few examples of applications that currently mix stock trading with cryptocurrency trading. The move that FTX has made is not usual since it signals a crypto-native firm entering conventional markets.
In the past months, most traditional financial organizations have been adding digital assets as part of their services to ensure their clients are not left behind as the world transitions into the digital space.
Bankman-Fried Buys Shares In Robinhood
A recent filing with the appropriate regulatory authorities reveals that Bankman-Fried has purchased 7.6% shares in Robinhood. According to the disclosure, he placed a total investment of $648 million into Robinhood at an average share price of $11.52. Around the middle of March, he started making purchases of the property, and he kept doing so up to the 11th of May.
Following a significant decline in the stock price of Robinhood, Bankman-Fried started stockpiling the company’s shares. The online trading platform for stocks went public in July 2021, but it was unable to maintain the attention of investors for very long as the retail trading fever died down.