Users to soon Trade Tokenize Shares of Apple, Tesla, Amazon etc
- US, Syria, North Korea and other jurisdiction are excluded from trading
The tokens are designed for investors who have difficulty in accessing stocks through traditional markets
FTX Users will soon be able to trade tokenized shares of some of the world largest firms on the platform. This includes stocks of firms such as Apple, Tesla to Amazon.
This was made possible by the partnership between FTX and German financial firm CM Equity AG and Swiss-based Digital Assets AG which is offering ‘fractional stocks’ and allow cryptocurrency traders trade several stocks and cryptocurrency pairs on the FTX platform.
According to the CEO of FTX, Sam Bankman-Fried, the tokens are designed for investors who have difficulty in accessing stocks through traditional markets.
Describing how the tokens will function, CEO of FTX said the tokens will behave like an Exchange Traded Fund ETF or a depository receipt. Traders will be able to trade the tokens on the exchange but they will only be able to cash them out for the underlying security via CM Equities, which is the custodian of the actual securities.
According to the exchange platform, traders trading the tokens will incur trading fees however, there will be no other management or administrative fees for holding the tokens.
Trading these tokenized stocks will begin shortly however, registrations are open. Only select jurisdictions will be allowed to trade these tokenized securities and this excludes the USA, North Korea, Iran, Syria etc