Cryptocurrency exchange FTX will let customers trade stocks and exchange-traded funds alongside bitcoin and dogecoin on its popular trading app.
In an interview on May 19, the CEO of FTX Sam Bankman-Fried revealed that the crypto exchange had opened access to its new stock-trading service for a limited number of US users. He said the FTX is expecting to expand the feature to all American consumers in the coming months.
According to FTX (US) President Brett Harrison, the platform could eventually provide trading in other asset classes, such as futures, all within the same interface. He stated that the company is intended to offer an all-in-one app for financial services.
Like most large US online brokerage firms, FTX intends to offer commission-free stock trading. But Harrison said that the company will not direct consumer orders to high-speed traders in exchange for cash, a controversial practice known as payment for order flow.
Payment for order flow has come under increased scrutiny by lawmakers and regulators after frenzied trading in GameStop Corp. and other meme stocks.
In January, Harrison announced that the crypto exchange was working on introducing stock trading. FTX created a waiting list for the new business. Other apps like Robinhood, Block Inc.’s Cash App, and Public.com, have already merged stock and cryptocurrency trading.
In April, FTX bought a stake in the IEX stock exchange’s parent business, which was made famous by Michael Lewis’ 2014 book Flash Boys.
Last week, FTX co-founder and CEO Sam Bankman-Fried announced that he had purchased a 7.6% share in trading software provider Robinhood Markets Inc.