FTX, the major cryptocurrency derivatives exchange, has launched trading in “fractional stocks offerings,” tokenized products representing the shares of global firms.
It has been reported that the products were launched on October 29 in partnership with German-licensed investment Firm CM-Equity and tokenization firm Digital Assets AG.
However, more than one dozen equity and crypto pairings are available for trade on FTX, including fractionalized Tesla (TSLA), Apple (APPL), and Amazon (AMZN) derivatives.
FTX users can now trade fractionalized shares in Amazon, Apple, Tesla, and other popular stock https://t.co/LGSe8sepU4 — Cointelegraph (@Cointelegraph) October 29, 2020
The report said that fractionalized ownership lets the derivatives be broken down into smaller sizes than whole units by allowing retail traders to speculate on expensive stocks like Tesla with less capital.
Sam Bankman-Fried, the Chief Executive of FTX, said:
“Both crypto trading and equities trading have been steadily attracting a wider audience with new market participants coming in. 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.”
Likewise, traders based in the United States and other jurisdictions restricted by FTX will not be eligible to access the exchange’s fractionalized equity products.
Thus, FTX bases its operations from Hong Kong but is owned by its Antigua and Barbuda-based parent-company FTX Trading Limited.
Source: Cointelegraph