Crypto Derivatives Exchange FTX Now Offers Tokenized Stocks Trading
- FTX has partnered with Digital Assets AG and CM Equity to make the new feature possible.
- The new tokens represent a fraction of blue chip stocks like Apple, Tesla, and Amazon.
Illustration from Freepik
Popular crypto derivatives exchange FTX is entering the space of tokenized equity trading, enabling its users to trade the world’s most popular stocks, Bloomberg reported on 29 October.
According to the publication, the new FTX offering comes in partnerships with tokenization firm Digital Assets AG and investment firm CM Equity. The exchange’s users will now have access to more than 12 equity and crypto pairs thanks to the firm’s “fractional stocks offerings”, which are tokens representing a fraction of high demand stocks like Tesla (TSLA), Apple (APPL) and Amazon (AMZN).
The CEO of FTX, Sam Bankman-Fried, noted that the new offering is aimed at investors who have trouble accessing traditional stocks. He said:
“These products demonstrate a powerful future, in which assets are digitized and traders have unlimited creative potential to express their beliefs about the markets.”
Each new token will represent only a fraction of a firm’s share, meaning FTX users will have the option of trading half a share, which would enable traders to speculate on expensive stocks with less capital. Not everyone on the platform will have access to the new offerings, with traders from the U.S. and other restricted jurisdictions being locked out from the exchange’s fractionalized equity products.
Users will have access to the new products only after they pass CM Equity’s KYC and compliance, as the firm will be the custodian of the shares that will back FTX’s new tokens. According to the exchange’s website, the tokens can also be used to redeem the underlying shares from CM Equity.
This is not the only new product released by FTX this week. On Wednesday, the exchange announced the launch of TixWix, a new product built in partnership with blockchain gaming platform Hxro, which targets retail customers in the world of options trading.
- The New York Jurors took 4 fours of deliberating before pronouncing the former FTX CEO guilty of all seven charges of fraud and conspiracy to commit fraud.
- Bankman-Fried will now have to appear in court on 28 March, 2024, where he will face a potential maximum sentence of 115 years in prison.
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
lev radin/Shutterstock
- A little over $13 million in altcoins were sent to crypto exchanges Binance and Coinbase in the past 24 hours, which is in accordance with a September court order.
- The court ordered a phased liquidation process, which allows the bankruptcy estate to sell $3.4 billion worth of digital assets over a certain period of time.
- Joseph Pimbley, a member of litigation consulting firm PF2 Securities, will try to rebuff testimonies from Caroline Ellison, Gary Wang, Nishad Singh, and Adam Yedidia.
- During his testimony Pimbley will try to establish a timeline for the FTX-Alameda line of credit, and convince the jury it fluctuated between $1 billion and $3 billion between 2021 and 2022.