Crypto Exchange FTX’s US Arm Set To Introduce Stock Trading

Key Insights:

• FTX. US is set to launch the stock trading feature over the next few months.
• Binance, after an attempt in 2021, failed to continue its operations, citing regulatory concerns.
• FTT has been stuck in the bearish zone for more than a month now.

In a press release today, cryptocurrency exchange FTX announced its newest venture, one that has been uncharted territory for its competitors.

Bringing regulated stock trading onto its platform, FTX will be deploying the feature for the users of the crypto exchange’s US arm FTX.US.

Stocks X Crypto

Combining crypto and stock trading is not a new attempt, as last year, Binance pioneered this field in its own unique way.

Instead of directly bringing US equities onto the exchange, Binance introduced crypto assets that were tied to the value of shares of stocks such as Tesla, Apple, and Coinbase.

However, after the exchange began facing pressure from regulatory authorities from all around the world, Binance stopped offering this facility to investors.

But unlike Binance, FTX will not be offering crypto tokens tracking stock prices, instead, it will directly provide regulated US equities.

Being an affiliated broker-dealer registered with the SEC and a member of FINRA/SIPC, FTX will be offering these services through FTX Capital Markets.

Commenting on the launch, FTX US’ president Brett Harrison stated,

“Our goal is to offer a holistic investing service for our customers across all asset classes. With the launch of FTX Stocks, we have created a single integrated platform for retail investors to easily trade crypto, NFTs, and traditional stock offerings through a transparent and intuitive user interface.”

Expected to be available within the next few months, stock trading on the exchange will be completely commission fees-free.

Furthermore, FTX US will also allow its clients to fund their accounts with the stablecoin USD Coin (USDC),

This will be a huge opportunity for the exchange to arise as a prominent player in the crypto as well as potentially the equity trading space.

FTT on the Charts

While the exchange is making strides in its own ways, its native token, FTT, has not been particularly impressive over the last few days.

After declining by 25.27% during the week-long crash of May 5, FTT managed to make a 10.46% recovery, but the same was invalidated yesterday after the price fell by 7.63%.

As a result, FTT has not been able to come out of the bearish zone that it has been stuck in since the first week of April, and neither has it been able to mark a bullish crossover at the same time period despite repeated attempts.

Thus as FTX expands its operations, it could potentially positively affect the price of FTT as well.