Crypto exchanges are looking for ways to expand their domain, and it seems that the blockchain space is no longer enough. Now, the US subsidiaries of FTX and Bitstamp can start providing support for equity trading to their clients.
According to a report by Bloomberg, both the exchanges are fine-tuned to enter the world of traditional finance. If their plans come to fruition, both FTX and Bitstamp will provide enough diversified services for their clients to concentrate a substantial portion of their assets in their custody.
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It is not clear whether both platforms want to apply to become a stock exchange or a broker, although it is important to note that although both require a difficult regulatory process, the general consensus is that becoming a broker is easier (like Robinhood). ) compared to exchanges (such as Nasdaq).
Both FTX and Bitstamp have indicated their interest in entering the stock market in the past, so the reports confirm speculation about the business model the exchange was looking to adopt.
In an interview shared by Bloomberg, Bitstamp USA CEO Robert Zagotta indicated that the exchange was interested in offering stock trading options, but his words made it clear that it was all just exploratory:
“(The stock market is a) very competitive space, and there are some very important players in it; we have to be confident that we have the right to win in this area.”
He added that if it decides to expand, Bitstamp USA could focus on partnerships or acquisitions to speed up the regulatory process.
For its part, FTX US took a more direct and aggressive approach.
In a tweet on January 11, 2022, the CEO of FTX US, Brett Harrison, stated that the stock market was a priority for the company.
We are hard at work on stock! Features we’re planning for day one:
-Live BBO and historical candles
-Stock screening/search functionality
-Basic Fundamentals (Market Cap, P/E Ratio, Dividend Yield)
– Portfolio Performance Tracking, Order/Business DetailsWhat else should we have? pic.twitter.com/q2bTpsfuna
— Brett Harrison (@bret_ftxus) 11 January 2022
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It is important to note that FTX has already played with the stock market, offering its clients the opportunity to trade tokenized stocks on a blockchain representing the price of major SP500 companies. However, regulatory pressure negatively affected these products.
Other exchanges sidestepped the issue. For example, Binance last year offered an opportunity to trade tokenized stocks. However, it started with Tesla and due to several warnings from US regulators withdrew its product three months later.
Bloomberg contacted Binance to find out if it is looking forward to entering the stock market, but the exchange said that it is focused on the crypto market for the time being.
Coinbase declined to respond, although the company recently acquired a derivatives exchange, so it may be easier for analysts to map out their business interests a bit.
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