Cryptocurrency trading giant FTX enters stock trading

FTX will allow users to diversify their portfolio and access their cryptocurrencies and stocks in one place.

It’s the world upside down. Now the major cryptocurrency trading platforms are starting to offer their clients the opportunity to trade … on the stock markets.

This is the case of the FTX platform, one of the American leaders in cryptocurrency trading, which will offer a service called FTX Stocks in beta to a sample of American customers. The goal is to offer stock trading on a zero commission model on the Nasdaq market. Several brokers, such as Robinhood, have entered this zero-fee niche in recent years in the United States. By not charging commissions, these brokers earn by placing their clients’ cash or by reselling the funds the ability to execute orders transmitted by their clients (which allows them to set up high-frequency strategies).

Diversify your portfolio

This new FTX feature will allow users to diversify their portfolio and access their cryptocurrency and stock portfolio in one place. FTX Stocks “allows you to trade and invest in hundreds of publicly traded stocks in the United States, including common stocks and ETFs, in an integrated experience with the existing FTX USA cryptocurrency trading app,” the press release states.

“Our goal is to provide our clients with a holistic investment service across all asset classes. With the launch of FTX Stocks, we have created a single integrated platform for retail investors to easily trade cryptocurrencies, NFTs and share offerings. through a simple and intuitive user interface experience, “said Brett Harrison, President of FTX US.

This may seem somewhat at odds with a cryptocurrency world that is trying to break free from the traditional financial sphere by all means. But there, no, on the contrary, FTX clients will also be able to fund their securities account to buy shares with cryptocurrencies, stablecoins for the most part like Tether’s USDA.

FTX is also pragmatic and needs to grow rapidly as it faces a cold spell in cryptocurrency investing with the recent drop in cryptocurrency prices.

A merger of FTX and Robinhood?

This service stands out as a diversification that will primarily bring customers to FTX and flow, specifically to continue investing and strengthening its cryptocurrency investment network.

This is another bridge between the classic stock market and cryptocurrencies, and for once concrete. At the same time, the founder of FTX acquired a 7.6% stake in the Robinhood trading platform. In this context, we can clearly begin to hypothesize an offensive on the way, and why not a merger of the two companies, especially since Robinhood is going through a rather difficult time. In fact, Robinhood’s shares hit an all-time low last week, roughly 77% below the July 2021 IPO price.

Antoine Larigaudrie edited by PA

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