Sam Bankman-Fried expands empire with launch of FTX Stocks
FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in all 50 US states.
The crypto giant, helmed by billionaire Sam Bankman-Fried, launched stock trading capabilities in private beta mode for a select group of customers back in May. At the time, it promised a full rollout before the end of 2022 in an effort to compete with popular platforms such as Robinhood and eToro.
The exchange has already fine-tuned details to enter the world of traditional finance. To provide transparent trade execution and fair pricing, FTX Stocks will initially route all orders through Nasdaq, and will not receive any payment for order flow.
In addition, fractional share trading will be available in select securities and the exchange plans to add features such as live prices, company data, portfolio performance tracking.
FTX US made headlines earlier this year when the exchange has become an investor in New York City-based IEX Group, the eighth largest stock exchange operator globally. The startup took a bet and made a strategic investment in the “Flash Boys” exchange as it aims to leverage its expertise and infrastructure to establish a regulated marketplace for buying, selling, and trading digital asset securities.
FTX US President Brett Harrison said the launch of FTX Stocks creates a single integrated platform for retail investors to easily trade crypto, NFTs, and traditional stock offerings through a transparent and intuitive user interface.
Harrison further explains that there is clear market demand for a new retail investment experience that offers full order routing transparency to customers and does not rely on payment for order flow.
Sam Bankman-Fried’s crypto exchange has applied for a New York trust charter (becoming a New York Limited Liability Trust Company) with the state’s Department of Financial Services (NYDFS). If approved, the coveted licence will enable FTX.US to offer its cryptocurrency trading services to clients based in New York. Additionally, a NY Trust Charter allows a company to provide services in many other states without obtaining additional licenses.