Crypto exchanges are seeking new methods to grow their domains, and the blockchain space appears to be running out. Now, FTX and Bitstamp’s US subsidiaries may be set to start giving equities trading services to its consumers.
Both markets are fine-tuning specifics to join the realm of traditional finance, according to a Bloomberg storey. If their intentions come to fulfilment, both FTX and Bitstamp will be able to provide a wide range of services that will allow its consumers to put a large portion of their money in their hands.
When Bitcoin and Stocks Collide
It’s unclear if both platforms seek to become trading platforms or brokers, but it’s worth noting that, while both involve a lengthy regulatory procedure, the prevailing view is that becoming a broker (like Robinhood) is easier than becoming an exchange (like Nasdaq). Both FTX & Bitstamp have already shown interest in entering the stock market, thus the revelations validate rumours about the exchanges’ intended business strategy.
Robert Zagotta, CEO of Bitstamp USA, stated in an interview with Bloomberg that the platform was interested in giving stock trading alternatives, but his statements made it clear that this was only a test. If Bitstamp USA decides to grow, he believes it would concentrate on partnerships or mergers to expedite the regulatory process. FTX US, on the other hand, chose a much more direct and assertive approach.
Real Stocks vs. Tokenized Stocks
It’s worth noting that FTX had previously dabbled with the share market, allowing clients to exchange tokenized equities on the blockchain that represented the price of big SP500 businesses. Regulatory pressure, on the other hand, had a detrimental influence on these items. Other conversations avoided the topic. Last year, Binance, for example, allowed users to trade tokenized equities. It began with Tesla, but after multiple warnings from US regulators, it pulled its device three months later.
Binance was approached to see whether it planned to enter the financial markets, but the exchange replied it was now concentrated on the crypto market. Coinbase has declined to comment, despite the fact that the firm just purchased a derivatives exchange, making it simpler for researchers to map its corporate interests.