FTX US and Bitstamp USA Are Working to Offer Stock Trading Services

The blockchain space is not enough for crypto exchanges. They are now looking for new ways to grow their business. The U.S. subsidiaries for Bitstamp and FTX could soon offer support for equity trading to their customers.

Bloomberg reports that both exchanges are fine-tuning details in order to enter traditional finance. Both Bitstamp and FTX would be able to offer services that are diverse enough to allow their customers to keep a substantial portion of their wealth in their care if their plans become a reality.

Crypto meets Stocks

Although it is not clear whether either platform wants to become stock exchanges, or brokers, it is important that both require a lengthy regulatory process. However, it is generally agreed that it is simpler to be a broker (like Robinhood), than an exchange (like Nasdaq).

Both Bitstamp and FTX had expressed interest in entering the stock market in the past. The reports confirm speculation about what business model they wanted.

Bloomberg interviewed Robert Zagotta, Bitstamp USA CEO. He indicated that Bitstamp USA was interested in stock trading options. However, his words revealed that this was purely exploratory.

“The stock market is very competitive, and there are many very important players in it. We have to be sure that we have the right to win in this area.”

He stated that Bitstamp USA could look at partnerships and acquisitions to accelerate the regulatory process if it decides to expand.

FTX US, for its part, took a more direct approach and was more aggressive.

Brett Harrison, CEO of FTX USA, stated in a tweet that the stock exchange was a priority for his company.

Stocks are being worked hard! We’re working on features for day 1.

Live BBO and historical candles. Stock screening/search functionality. Basic fundamentals (market capital, dividend yield, P/E ratio) Portfolio performance tracking, order/trade details.

What other items should we have? pic.twitter.com/q2bTpsfuna

— Brett Harrison (@Brett_FTXUS) January 11, 2022

Tokenized vs Real Stocks

Important to remember that FTX already had a relationship with the stock exchange, offering customers the chance to trade tokenized stocks on blockchain. This represented the price of SP500 companies. These products were negatively affected by regulatory pressure.

The issue was not addressed by other exchanges. Binance offered an opportunity to trade tokenized stocks in the last year. It started with Tesla, but it pulled its product three months later after receiving warnings from U.S. regulators.

Bloomberg reached out to Binance to inquire if the exchange was planning to enter the stock markets. However, Binance stated that it is primarily focused on the crypto market at the moment.

Coinbase did not respond to our request, but it recently acquired a derivatives trading platform, which could make it easier for analysts to map the company’s business interests.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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