Buying shares in a company with crypto
The crypto market has expanded exponentially in recent years with more than 9,000 digital coins. Now, investing in cryptocurrencies has become a mainstream trend. You can now generate passive income through lending and capital gain by crypto investing or trading. Another avenue you can take is investing in the many blockchains and DeFi startups.
There is also a rising trend of real-world equity investing and trading with stablecoins. Decentralised exchanges like FTX US have already begun to offer services in this area. This has opened a new gateway for buying shares in a company with cryptocurrencies.
However, the market lacks clarity on how equity trading will work with stablecoins. To make things more straightforward, we have discussed below how retail investors can benefit from fiat-based stablecoin investing.
The crypto world meets the stock market
The crypto market involves digital assets that emerged only in the last decade. The stock market is a much more mature and competitive market that involves real-world assets. Stocks were considered the primary investment option by the masses. But, as the crypto world continues to grow, many digital tokens have gained investors’ attention.
However, crypto is a precarious and unpredictable market. That’s why tokens’ real-world usage is still limited. For this reason, stablecoins were introduced, pegged with fiat currencies. But the debacle of the Terra ecosystem left a dent in their reputation.
Now, many DEXs are looking to link stocks and stablecoins. This will even help crypto investors in buying shares in a company. Moreover, it will help in diversifying your portfolio and help increase the real-world usage of crypto coins and tokens.
Crypto exchanges for buying shares in a company
Buying shares in a company with cryptocurrencies is an emerging trend in the industry. There are limited exchanges that offer equity trading services with stablecoins. Here are a few names that have already started or have announced to provide this service soon.
FTX US One of the leading digital asset exchanges, FTX, has recently announced its services in the stock market. The exchange will allow buying company shares with both fiats and fiat-backed currencies. FTX US will primarily deal with US dollar-pegged stablecoins like Binance USD and USDC (USD Coin). Also, the exchange made it clear that it would not be supporting algorithmic stablecoins like Terra USD.
Voyager Digital Another US decentralised exchange, Voyager Digital, has also signalled toward offering a similar service. It will work as a brokerage platform and allow you to buy stocks through stablecoins. Voyager Digital will likely work with USD-backed stable tokens like USDC. The platform has announced it would begin offering the service later this year, however this looks unlikely given that Voyager filed for bankruptcy protection last month.
Bitstamp USA Yet another US-based crypto exchange, Bitstamp USA, might enter the stock trading services via stablecoins. The platform has yet to announce its plan for when and how it will introduce the equity trading service. However, the platform’s CEO, Bobby Zagotta, showed keen resolve to enter the market.
Stablecoins in the stock market can revamp the existing business model of brokerage exchanges. It can create an environment where investors can trade both real-world and digital assets in one place. Buying shares in a company may also help bring crypto investors into a regularised market and increase the real-world usage of cryptocurrencies.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.