Cryptocurrencies continue to gain popularity, which is drawing interest even from the skeptics. And now, cryptocurrency exchanges have started offering the option to buy tokenized shares like Tesla (NASDAQ: TSLA).
Cryptocurrency exchange Bittrex Global has launched trading in tokenized stocks like Apple, Tesla, and Amazon on its digital asset exchange. The platform announced that traders and investors will have direct access to listed companies, including Google, Facebook, Netflix, Pfizer, and others, without having to use an external broker or pay additional fees.
Created in partnership with DigitalAssets.AG, tokenized shares can be purchased in fractions using U.S. dollars, Tether, and Bitcoin. According to Bittrex, listings also open up access to countries without access to the US stock markets, which could be a very attractive opportunity.
Traditional clearing systems "are inefficient and complex and trading small volumes can be expensive and take days, all of which is totally unnecessary given the technological advances that have been made in the last decade," said Bittrex CEO Tom Albright.
At the end of October, the FTX crypto derivatives exchange announced that it would allow users of the exchange to register to trade more than 12 pairs of stocks and cryptocurrencies—including Tesla.
To be clear, the crypto exchange does not list the company's actual shares to the user, but digital assets "backed 1:1 to traditional stocks, entitling holders to the same economic benefits of owning the underlying stock."
Bittrex said its stock tokenization initiative is a first step towards creating more accessible markets in which securitized token offerings can attract more diverse investors. In the future, the company plans to draw attention to ETFs, indices, and other asset classes.
Source: FTX, Coindesk
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