In less crypto-y related crypto-news: the crypto exchange FTX is going TradFi: the company is launching a feature to allow users to trade stocks and ETFs alongside crypto.
The company’s brokerage service will expand to the vast majority of its U.S. customers in the next few months, adding another player to an industry rife with “no commission” trading platforms.
However, unlike incumbents in the space like Robinhood and WeBull, FTX will actually for forego routing orders to order makers. By doing so, FTX will do away with the controversial practice of “Payment for Order Flow.”
Broker-dealer Public.com did away with Payment for Order Flow during the GameStop short squeeze last January, opting to deliver orders directly to the exchange. However, discontinuing PFOF has reportedly had a massive downside effect on the company’s revenue.
For FTX, that doesn’t seem to be a concern: it’s already a goliath in crypto trading across spot, futures, and options markets. It doesn’t care about “see[ing] a profit on day one,” according to FTX.US President Brett Harrison. He added that FTX eventually wants “to offer … an everything app for financial services.”
The addition of equities trading follows a monster purchase of stock in Robinhood by FTX CEO Sam Bankman-Fried, who acquired 7.6% of the company. He claims that he intends to be a passive investor.