Crypto Exchange Is Getting Involved In FTX Stock Trading

Cryptocurrency exchange FTX will soon allow traditional stock trading with its crypto offerings, the company announced in a press release (via The Wall Street Journal). The functionality is currently available to a select few users in the US, but is aiming to roll out to more merchants in the coming months.

FTX says it will offer commission-free trading with access to "hundreds of U.S. exchange-listed securities," including both common stocks and ETFs. It will allow customers to add money to their accounts through credit card deposits, ACH transfers and wire transfers. FTX also said that it is the first exchange to allow users to fund their accounts with a fiat-backed stablecoin such as USDC. Although the price of stablecoins is not (theoretically) as volatile as other cryptocurrencies, as they are tied to a currency or commodity, the recent downturn in the overall crypto market has left some stablecoins struggling.

Instead of using the pay to order flow (PFOF) method employed by Robinhood and other exchanges, FTX plans to route orders directly through the Nasdaq exchange. PFOF includes brokerages who receive compensation for placing orders to market makers, a process critics say can lead to a conflict of interest, as brokers seek to place orders from institutions that maximize their profits. The practice came under scrutiny after GameStop's stock boomed last year.

Brett Harrison, US President of FTX, said in a statement, “With the launch of FTX Stocks, we have created an integrated platform for retail investors to easily trade crypto, NFT and traditional stock offerings through a transparent and intuitive user interface. The platform has been created." The stage has been created." ,

Blockchain-owned cash apps Robinhood and Public.com also let users trade stocks and crypto – throwing FTX into the mix as it will compete directly with each of the platforms. Earlier this month, FTX founder Sam Bankman-Fried disclosed his purchase of a 7.6 percent stake in Robinhood, making him the company's third largest shareholder. In Bankman-Fried's 13D filing, he stated that he has no plans to acquire the company at this time, but as the WSJ points out, this type of form is typically filed by an investor who wants more shares of a company. wants. wants to buy or take. ,