Bermuda-based cryptocurrency exchange Bittrex today announced that it will list tokenized stocks on its platform in cooperation with DigitalAssets.AG. With this move, traders and investors will get direct access to listed companies without having to use an external broker or pay additional fees. Users can purchase shares using either US dollars, Tether, or Bitcoin with 24/7 access to these markets.
Tokenized stocks are tokenized derivatives that represent traditional securities, particularly shares in publicly firms traded on regulated exchanges such as Tesla, Apple, and Facebook. Key benefits of tokenized stocks include fractional ownership of traditional securities. This would not be the first time, a crypto exchange launched its own tokenized stocks, with major exchanges FTX and Bitfinex making similar announcements earlier this year.
According to the exchange, tokenized stocks, which can be traded alongside digital assets listed on Bittrex, marks a significant milestone in the adoption of blockchain technology by traditional financial services. On that note, Bittrex Global’s CEO, Tom Albright said in a statement:
Blockchain technology has the potential to radically broaden access to financial services, and Bittrex Global is very proud to provide people with a portal to build their capital and private wealth in a way that was unimaginable a decade ago.
Bittrex now offers over 12 well-known shares which include Tesla, Google, Facebook, Amazon, Netflix, and the SPY, an exchange-traded fund consisting of the top 500 US companies. According to its website, users can buy a portion of a stock instead of having to buy an entire stock – unlike traditional stock markets. Furthermore, users who don’t want to trade individual stocks can invest in the S&P 500 with the SPY ETF.
Additionally, CM-Equity, the custodian, is fully regulated in Germany and is a licensed financial institution permitted to offer these aforementioned products. Certain Bittrex Global users who trade tokenized stocks may also have to become customers of CM-Equity and pass-through CM-Equity’s KYC and compliance.