Some of the leading cryptocurrency exchange platforms in the US, FTX and Bitstamp, are looking towards launching stock trading services. This will allow the exchange platforms to expand their scope of offerings.
These will not be the first crypto exchange platforms to offer stock trading services. Through their new offerings, they will be competing with Robinhood and eToro.
FTX and Bitstamp to support stock trading
A recent report by Bloomberg has stated that the US subsidiaries of FTX and Bitstamp want to offer traditional financial services to their clients. This comes as exchanges continue to look for ways to expand their offerings and diversify their revenue streams.
The Bloomberg report did not clarify whether the two exchanges want to become stock exchanges or stock brokerage firms. Robinhood and eToro offer stock brokerage services, but getting approval to support this can be a tough and uphill process.
Bitstamp is yet to issue a clear announcement if stock trading will soon be available on the exchange. During an interview with Bloomberg, the CEO of Bitstamp USA, Robert Zagotta, noted that the stock market was highly competitive and “there are some very significant players in it; we have to be convinced that we have a right to win in this space.”
This announcement suggests that Bitstamp’s announcement about stock trading is more of an exploratory option rather than a definite stand that the exchange will launch this service.
On the other hand, FTX has given a definite stand, with the exchange tweeting, “We’re hard at work on stocks!” The tweet by the exchange also looked into several features related to the stock market that it wanted to launch.
Crypto and stocks
The crypto and the stock markets have become more interconnected. In recent months, the performance of the stock market and the crypto market has been somewhat similar, but cryptocurrencies still have a more volatile nature.
This relationship has been attributed to an influx of institutional players into the cryptocurrency space. Additionally, some companies have also locked a part of their portfolio in crypto assets.
Despite this growing relationship, other exchanges are yet to issue similar announcements. Exchanges such as Binance and Coinbase are yet to announce their interest in the stock market. However, Binance had earlier offered tokenized stocks options before halting the product due to regulatory scrutiny. Coinbase also earlier acquired a derivatives exchange platform, signalling the firm’s plans for the future.
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