Saturday, February 4, 2023
Advertisements
Advertisements
Advertisements
Home Technology Second-largest cryptocurrency exchange FTX expand its empire

Second-largest cryptocurrency exchange FTX expand its empire

Advertisements

The cryptocurrency exchange FTX has launched stock trading capabilities for its customers via the U.S. Division. The company, headed by Sam Bankman-Fried, co-founder and billionaire, said in an announcement that the launch would be in private beta to a limited number of customers from a waiting list prior to it goes live in the second quarter of 2022.

Advertisements

FTX, the second-largest cryptocurrency exchange around the globe, has announced it will provide “hundreds of U.S. exchange-listed securities, including common stocks and ETFs,” including fractional shares of certain securities.

It is notable that FTX intends to channel all transactions through Nasdaq instead of a third-party market maker. The exchange has stated that it won’t receive payments for orders flow (PFOF), a method used to fulfill orders. Robinhood has become famous for. This requires the exchange to receive payments from market makers in exchange to direct orders through their channels. This is a controversial method of clearing trades as it typically means that the investor does not receive its shares for the most favorable price as the market maker makes money through the spread.

Robinhood remains to use PFOF because it could generate substantial profits from third-party market makers. FTX however will not be able to make any profit generated by its share trading offerings as it will be offering the service to customers without any fee or commissions to be that is charged for exchange.

FTX is also claiming to allow customers to pay for their brokerage accounts through the platform using fiat-backed stablecoins like USDC (these differ from the algorithmic stablecoins such as Terra (UST) that are supported by other cryptocurrencies and do not hold reserves as such in the typical sense). The exchange claims it will be the first exchange to offer this feature, however customers can also be able to fund their accounts through traditional methods like wire transfer, ACH transfer and card deposit.

FTX will also not make customers hold a minimum balance to be eligible for the no-fee account, according to the statement.

This announcement is a significant moment in Bankman-Fried’s plan to grow FTX from an institution-centric platform with deep roots in trading and to an online exchange which meets the wide range of requirements of investors who are retail. Bankman-Fried announced in a filing this week that he’d purchased shares in Robinhood valued at 7.6 percent of the company. This could be another step towards this goal.

Read More

RELATED ARTICLES

How Can Your Business Benefit from a Long-Term SEO Strategy?

As the internet becomes more and more competitive, it's important that your business has a long-term SEO strategy in place in order...

How To Select the Best Cloud Reporting Tool for Your Business

As businesses increasingly migrate to the cloud, the need to maintain visibility and control over their data and applications grows. Cloud reporting...

Record Your Screening Room Interviews with A Screen Recorder

Record Your Screening Room Interviews: You know you want to record your interview sessions, but how are you going to do it...
- Advertisment -

Most Popular

How To Choose the Best Travel Rewards Credit Cards

Choosing the best travel credit card can be a tough decision, as there are numerous options for different budgets and travel goals....

10 Things To Think About When Choosing A Medicare Advantage Plan

It might be difficult to choose the best Medicare Advantage plan for you and your family. How can you ensure that your...

The Most Popular Jewelry Gifts for Mom

When it comes to finding the perfect gift for your mom, jewelry is always a great option. After all, what mom wouldn’t...

Careers To Consider After Getting a Behavioral Therapy Master’s Degree

Behavioral therapy is a type of therapy that focuses on changing the behavior of a person. It is often used to treat...

Recent Comments