FTX Launches Trading of Tokenized Shares in Partnership with German CM Equity AG

From the likes of Amazon, Apple, Netflix, Facebook, Google to Tesla, crypto traders can now trade equities against crypto as well.

Cryptocurrency derivatives exchange FTX will now allow its users to trade not just crypto but tokenized shares of big giants and some of the world's most popular companies like Amazon, Apple, Netflix, Facebook, and Tesla.

These tokenized equity offerings are backed by the shares of actual stocks, custodied by CM-Equity, and can be redeemed for the underlying shares.

For now, trading is available on more than 12 equity and cryptocurrency pairs like BTC and stablecoins.

Because the tokens represent a fraction of one share, traders will be able to trade even half of a share if they want. Erik Voorhees, CEO of crypto exchange ShapeShift said,

“American companies cannot offer or compete with this. I’m glad intl companies can still innovate, and that crypto breaks down all borders over time.”

There have been some concerns in the crypto community about FTX breaking US regulations by offering trading opportunities for stock CFDs.

But for starters, traders in the US and other restricted jurisdictions won't be eligible to trade these new offerings.

Also, for this, FTX has partnered with Swiss-based Digital Assets AG and CM Equity AG, a financial firm fully regulated in Germany, to offer fractional stocks.

“CFDs aren't illegal – and offering them for US-traded companies on the NYSE and NASDAQ is allowed – you just need to follow the regulations and not try and skirt the rules just because you are on a blockchain,” said Adam Cochran, a partner at Cinneamhain Ventures.

In response to this news, the price of FTT jumped to $3.91. But it is to be expected, as FTX CEO Sam Bankman Fried said, “Everything on FTX involves FTT.”

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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