Image Credit: economictimes.indiatimes.com, moneycontrol.com
The users of the FTX exchange will now be able to trade in crypto tokens of American companies like Google, Facebook, Netflix and Tesla. The move to allow the trade of such tokens has already been implemented by Binance and Bittrex and now the Hong Kong-based cryptocurrency exchange- FTX is following the trend.
Digital finance firm- Digital Assets AG(DAAG) has launched 55 security tokens which will be available only on the FTX exchange. These free-floating tokens will be shifted from a private blockchain to the Solana Blockchain. According to DAAG, the Solana blockchain will offer “a more efficient and cost-effective environment” for the purpose of trading the stock tokens.
Based on Solana, the tokens can be easily traded with other exchanges based on the Solana blockchain.
Currently, trading in US company stocks is a cumbersome process for international investors. Moreover, due to the big time difference, an Indian investor wishing to trade in the US markets would be required to stay awake for the entire night.
Crypto tokens offer a better alternative as they are available on cryptocurrency exchanges that remain open 24 hours a day throughout the year. Unlike traditional stock exchanges, those like FTX don’t remain closed on market holidays.
However, no clarity has yet emerged on whether the token stock investors would get dividends similar to the traditional investors. While exchanges like FTX say that they are working on the issue, no guarantee has been given as yet.