Crypto trading giant FTX gets into stock trading

FTX will allow users to diversify their portfolio and access their cryptocurrencies and stocks in one place.

It’s the world upside down. Now the major cryptocurrency trading platforms are starting to offer their clients the opportunity to trade… on the stock markets.

This is the case of the FTX platform, one of the American leaders in cryptocurrency trading, which will offer a service called FTX Stocks in beta version to a sample of American customers. The goal is to offer to trade stocks, on a model with zero commission on the Nasdaq market. Several brokers, like Robinhood, have entered this zero commission niche in recent years in the United States. As they do not apply fees, these brokers earn money by placing their clients’ cash or by reselling to the funds the possibility of executing the orders transmitted by their clients (which allows the latter to set up high-frequency strategies).

Diversify their portfolio

This new feature of FTX will allow users to diversify their portfolio and access their cryptocurrency and stock portfolio in one place. FTX Stocks “allows you to trade and invest in hundreds of US publicly traded securities, including common stocks and ETFs, in an integrated experience with the existing FTX US cryptocurrency trading app. “, says the press release.

“Our goal is to offer our clients a holistic investment service across all asset classes. With the launch of FTX Stocks, we have created a single integrated platform for retail investors to easily trade crypto, NFT and traditional stock offerings through a seamless and intuitive user interface,” said Brett Harrison, President of FTX US.

This may seem a bit at odds with a cryptocurrency world that is trying to free itself by all means from the traditional financial sphere. But there no, on the contrary, FTX customers will even be able to fund their securities account to buy shares with cryptocurrencies, stablecoins for the most part like the USDC of Tether.

FTX is also pragmatic and needs to grow quickly while facing a cold snap in cryptocurrency investment with the recent drop in crypto prices.

A merger of FTX and Robinhood?

This service stands out as a diversification that will above all bring customers to FTX, and flow, in particular to continue to invest and strengthen its cryptocurrency investment network.

This is one more bridge between the classic stock market and cryptocurrencies, and for once concrete. At the same time, the FTX founder took a 7.6% stake in the Robinhood trading platform. In this context, we can clearly begin to speculate on an offensive to come, and why not a merger of the two companies, especially since Robinhood is having a rather difficult time. Indeed, Robinhood’s shares hit an all-time low last week, around 77% below its July 2021 IPO price.

Antoine Larigaudrie edited by PA

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