Crypto Exchange FTX Brings Tesla, Amazon, and Netflix for Tokenized Stock Trading
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Crypto Exchange FTX Brings Tesla, Amazon, and Netflix for Tokenized Stock Trading

October 29, 2020      Jafrin Ahmed

FTX cryptocurrency exchange will soon allow its users to trade tokenized shares from Telsa, Amazon, and Netflix. Other notable companies include the likes of Facebook, Google, and the SPDR S&P 500 exchange-traded fund.

FTX’s Foray Into Tokenized Equity Trading

FTX crypto exchange has partnered with German financial firm CM Equity AG and Swiss-based Digital Assets AG, according to a Bloomberg report from Oct. 29. The new offering is part of FTX’s foray into tokenized equity trading and is going live by the coming week.

This whole trading popular shares within a crypto exchange are called ‘fractional stock trading’ where users can buy less than one share, which is quite feasible for high priced stocks.

The recent popularity of institutional players to stake Bitcoin as its reserve asset has led the cryptocurrency’s value to triple since March to hit its current high, last during January 2018. FTX’s recent move comes amid the crypto industry’s recent efforts to popularize securitized token listings for a wider appeal.

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Traded Tokens To Behave Like Exchange-Traded Fund

Sam Bankman-Fried, CEO of FTX, says that the tokens are actually intended for those investors who find it difficult to access stocks from the conventional markets. “For a lot of people, it’s a hassle to access stocks. There are ways to do it but they feel very much old and clunky. Giving people access broadens out what you can trade.”

According to Bankman-Fried, the token will behave like a depositary receipt or ETF (exchange-traded fund). Investors only have to trade the tokens on the FTX crypto exchange, although they need to cash it out via CM equity for security-related concerns.

A spokeswoman from FTX added that there will be a small trading fee for accessing the service. Although, there will be no management fee or hidden price deductions for holding the tokens. Meanwhile, the US and other restricted jurisdictions will not be allowed to access the service.

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Jafrin Ahmed
Jafrin Ahmed

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Being a HODLer she takes a keen interest in following the volatile Bitcoin charts. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.