FTX Exchange Launches Stock Trading on Its Crypto Platform

  • FTX U.S. is launching stock trading on its platform
  • The FTX exchange is one of the largest operators in the U.S.
  • The company had previously stirred up chatter when it launched tokenized stock assets on its platform last year
A close-up shot of the concept for a cryptocurrency exchange page.
Source: PixieMe / Shutterstock.com

Sam Bankman Fried’s FTX exchange is one of the biggest in the world, and its U.S. arm enjoys a hefty user base. But, as with any other company, more users means more business. Keeping this in mind at all times has allowed FTX to employ several upgrades to its platform designed to up the platform’s appeal. Today, it is taking one of its biggest steps yet in this venture by launching a stock-trading arm.

Over the last several years, FTX U.S. has built up an empire. It stands now as one of the highest-volume exchanges in the world. In the last 24 hours, it has processed more than $3 billion in transactions. It also carries one of the most robust portfolios of trading options for its users, offering 326 different cryptos.

This success comes on the back of both a large PR campaign as well as a responsiveness to the wants of users. In early 2021, the company began its push into the mainstream, first by securing the naming rights to the Miami Heat’s home stadium, FTX Arena. It also is the only sponsorship worn by every umpire in Major League Baseball, having secured that deal in the summer of last year.

While it upped its facetime with the public, the company was also adding new ways to trade on its platform. In October of 2021, it enabled non-fungible token (NFT) trading with a dedicated marketplace. It also released a series of tokenized stocks, allowing users to trade Wall Street plays in crypto form. This week, it takes these offerings even further.

FTX Exchange Boosts Usability With Stock Trading

The FTX Exchange is continuing to build up its appeal with broader demographics by adding new investments to its platform. But this week, it is doing something completely new by adding stock trading to its platform.

Indeed, the company is enabling stock and exchange-traded fund (ETF) trading beginning today. This makes FTX U.S. the first native crypto exchange to add stocks to its platform. Besides FTX, the only major trading platform to offer both stock and crypto trading is Robinhood (NASDAQ:HOOD), which added crypto trading in 2018.

The catch to FTX’s platform is that, unlike Robinhood, users can actually trade stocks with crypto. Investors pay for their FTX-sourced stocks with both stablecoins and bank transfers. As of right now, stock trading is only available to waitlist users. The company expects the service to roll out in full by mid-summer.

One interesting aspect of the story is Sam Bankman-Fried’s recently purchased 7.6% stake in Robinhood. This news had spawned rumors of a merger between the two companies. Now, with both platforms offering crypto and equities trading, these theories will likely heat up.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/ftx-exchange-launches-stock-trading-on-its-crypto-platform/.

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