Traders on the cryptocurrency exchange desk FTX will be able to buy and sell tokenized shares of over a dozen large companies against Bitcoin and other stablecoins, CoinDesk reported Thursday.
What Happened: Tesla Inc (NASDAQ: TSLA), Apple Inc (NASDAQ: AAPL), and Amazon.com, Inc (NASDAQ: AMZN) are some of the stocks that can be traded on FTX’s platform.
The exchange’s fractional stocks offering means that traders can purchase tokens equivalent to a fraction of a stock at a time, FTX CEO Sam Bankman-Fried told CoinDesk.
“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,” said Bankman-Fried.
Why It Matters: Bankman-Fried said that the tokens are aimed at those investors who find it difficult or inconvenient to access traditional markets, reports Bloomberg.
While investors can trade the tokens on the exchange, they will need to cash them for the underlying security through FTX’s German partner CM Equity, which will hold the actual securities, the CEO said.
A trading fee is applicable but no other management fee will be levied for holding the tokens, an FTX spokesperson told Bloomberg.
United States residents and those in other restricted jurisdictions will not be able to trade the tokens.
Price Action: Bitcoin traded 0.48% lower at $13,204.21 at press time.
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