Crypto exchange FTX to offer 24/7 tokenized stock trading
October 29, 2020, 5:30AM EDT
1 min read
Cryptocurrency exchange FTX has ventured into the space of tokenized equity trading.
The exchange will now let users buy fractions of shares such as Tesla, Amazon, and Apple. Fractional stock trading allows buying less than one share, and it is particularly useful for high-cost stocks.
FTX has partnered with German financial services firm CM-Equity, and Switzerland-based tokenization solutions provider Digital Assets AG (DAAG), for the new 24/7 offering that is going live next week.
FTX CEO Sam Bankman-Fried told The Block that "a lot of customers" have been asking for a stock trading feature for a while, and CM-Equity and DAAG helped enable the offering.
"CM-Equity custodies the stocks. Tokens on them are then traded on FTX and are redeemable for the underlying stocks," said Bankman-Fried. "CM-Equity is a licensed entity and conducts compliance on all of the participating customers and trades."
DAAG, on the other hand, played a "key part" in putting the partnership together, said Bankman-Fried. DAAG helps its clients to tokenize financial products, according to its website.
As with FTX's other products, its equity trading offering won't be available in the U.S. and its other restricted jurisdictions, such as Iran, Syria, and North Korea.
Elsewhere in the market, crypto firms Uphold and Robinhood also offer fractional stock trading, among other companies.
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