Reports are showing Cryptocurrency exchange FTX opened commission-free stock and ETF trading in the U.S. However, the service will initially be limited to a small number of users,
with a complete launch of services including stocks, ETFs, cryptocurrencies, futures, and other assets to follow in a few months.
FTX will also allow users to deposit funds into their accounts using USDC. The move follows the recent acquisition of a 7.6% share in Robinhood by founder Sam Bankman-Fried. The organization aims to be a one-stop-shop for financial services.
Customers in the United States can now trade stocks, ETFs on FTX
According to the Wall Street Journal on May 19, one of the top crypto exchanges, FTX, has moved into a broader financial services market by starting to offer stocks and ETFs trading for US customers.
The FTX.US mobile app will allow users to trade stocks. Moreover, the firm plans to offer trading in hundreds of US-listed firms as well as exchange-traded funds.
Brett Harrison, president of FTX.US, told the Wall Street Journal:
“What we eventually want to offer is an everything app for financial services. But we won’t route customer orders to high-speed traders in exchange for cash, a controversial practice known as payment for order flow.”
Following the trading in of GameStop and other meme stocks last year, politicians and regulators have increased their scrutiny of the payments for order flow practice. Since then, the stocks have dropped nearly 50%.
Therefore, FTX prioritizes establishing itself in the regulated financial services industry in the United States, as shifting away from the payment for order flow approach will cost it money.
According to Harrison, the company has been working on it since January, and a waitlist for the new service was opened in February. Other companies, such as Robinhood, Block’s Cash App, and Public.com, have integrated stock and cryptocurrency trading. However, FTX is the first cryptocurrency exchange to access traditional financial markets.
FTX will see steady growth in 2022
FTX is exploding this year under the direction of Sam Bankman-Fried. The Bahamas-based crypto exchange increased its valuation to $32 billion in January. Also, expanded to Australia, the United Arab Emirates, and Europe. Sam Bankman-Fried purchased a 7.6% interest in Robinhood for investment purposes last week.