On 29th Oct, the leading cryptocurrency derivatives exchange FTX launched an innovative trading product, tokenized equity, which means tokens representing the stock shares of some top global companies.
FTX partnered with a German company called Digital Assets AG, who offers professional service to tokenize financial products, as well as a German-licensed investment Firm CM-Equity, who is fully-regulated to provide such products and is qualified to monitor all trading activities.
This new product allows worldwide traders to access more than a dozen equity and crypto pairings. The first available derivative is TSLA/USD.
What exactly are equities? Equities are stocks that trade on traditional regulated exchanges. FTX itself lists tokens on the equities.
For example, the TSLA/USD page on FTX is a market to trade tokens on Tesla stock. These spot tokens are backed by shares of Tesla stock custody by CM-Equity. You can redeem the tokens with CM-Equity for your shares of Tesla stock if you like. Tokenized equities are also spot tokens, like BTC/ETH/FTT/etc, that can be used as collateral for futures trading on FTX.
So now you can purchase real Tesla stocks with USD stablecoins on FTX. Convenient for global traders who are not in the US or who are not able to directly trade in the US stock market.
One more benefit is that it provides a lower entry for normal traders. When it comes to some large firms like Apple or Amazon, if you can’t afford a single share of their stocks, you might get a token on FTX that equals 1/10 of that.
Then how to trade equities on FTX? Basically, you can trade them just the same way you trade other spot markets. There will be fees, API calls, and GUI instructions, all the same.
Interested in this special Tesla derivative? Would like to trade now? Get a $30 trading fee voucher for yourself via our special link: https://ftx.com/#a=dappcom.
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