- FTX will offer 24/7 tokenized stock trading by enabling users to buy fractions of shares.
- The cryptocurrency exchange announced the partnership with CM-Equity, a primary tokenization solutions provider.
Cryptocurrency exchange FTX announced on Thursday, October 29, that its customers can register to trade more than 12 crypto and equity pairs using fractional stocks. Users will be able to trade stocks like Tesla, Apple, or Amazon in the form of tokens. FTX is owned by FTX Trading Limited, which is based in Antigua and Barbuda.
FTX launches first of its kind product
One of the main features of the new product offered by FTX is the ability to break down shares into smaller sizes than full units. This allows its clients to trade using less capital while still having access to top stocks such as Tesla or Apple. Sam Bankman-Fried, FTX’s Chief Executive, stated:
These products demonstrate a powerful future, in which assets are digitized and traders have unlimited creative potential to express their beliefs about the markets. Both crypto trading and equities trading have been steadily attracting a wider audience with new market participants coming in. These fractional stock products reflect the reality that today’s traders are industry and sector spanning and want trading opportunities that fully match their interests and mindset.
FTX was able to achieve this tokenization method thanks to Digital Assets AG, a capital markets solution provider, and CM Equity, an investment firm, which will be in charge of custody fees on stocks.
Unfortunately, countries and other jurisdictions which are already restricted by the exchange like the US and others will not be able to participate in this product.
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