FTX’s US subsidiary FTX US has launched a stock trading platform, the stocks will allow retail investors to fund their accounts with fiat-backed stablecoins like USD Coin (USDC).
The owner and operator of the exchange West Realm Shires Services, announced on May 19 the imminent debut of FTX Stocks, a stock trading service available directly through the trading app.
Hundreds of U.S. exchange-listed shares, including common stocks and exchange-traded funds, will be available for trading and investing on the new stock trading platform.
FTX Stocks will be the first platform to allow retail investors to fund their accounts using fiat-backed stablecoins like USD Coin, according to the statement (USDC).
The option is provided through cooperation with the FTX US crypto exchange, and it serves as an alternative to traditional U.S. dollar deposit methods like wire transfers, credit card deposits, and others.
FTX Stocks platform
The FTX Stocks platform will be accessible in a private beta phase for a small group of US consumers selected from a waiting list. According to the release, the service will first route all orders through Nasdaq to ensure transparent trade execution and fair pricing.
FTX US President Brett Harrison said, “With the introduction of FTX Stocks, we have built a single integrated platform for retail investors to seamlessly trade crypto, NFTs, and traditional stock offerings through a transparent and intuitive user interface.”
He went on to say that there is “obvious market demand” for a new retail investment experience that supports “complete order routing transparency” without relying on payment for order flow.
The announcement comes after FTX founder and CEO Sam Bankman-Fried questioned Bitcoin (BTC) as a payment network’s efficiency on May 16. He highlighted particular worries about the Bitcoin network’s mining consensus, claiming that it is insufficiently scalable to handle millions of transactions.
The CEO has also been buying significant industry companies’ stock, including around $650 million in the crypto-friendly stock trading app Robinhood’s stock as of May 2022.