Interview with FTX founder SBF: Hope to provide users with any products they want to trade (www.blockcast.cc)

The U.S. stock market in 2020 is so exaggerated that movie scripts dare not shoot like this.

In just 10 days in March, just after the stock god Buffett said, “I have only experienced a blowout in my life,” the US stock market was like the ebb sea water, and it was blown four times without resistance. And just when the market was tragic, the U.S. stocks actually stepped out of the V-shaped curve. There was no sign of the rising tide, and various technology leaders were moving towards their historical highs.

Apple has a market value of more than US$2 trillion, Tesla’s stock has risen from US$600 to US$2500, and Beyond Meat, the leading artificial meat maker, has risen from US$90 to a maximum of US$160, including NIO, which has recently increased 6 times, and Internet giant Meituan Etc., a series of technology assets are the leaders of this rare secondary market bull market in history.

This background has also allowed the US stock market to successfully attract the attention of a large amount of funds. Subject matter, liquidity, trading volume, and volatility, any element perfectly meets the needs of traders, and the US stock market has become a trading mecca for traders.

On October 29, the global cryptocurrency derivatives trading platform FTX announced that it has joined forces with Digital Assets AG (DAAG) and CM Equity to launch equity token trading for the first time, introducing U.S. stocks into the cryptocurrency trading platform, so that cryptocurrency users can also participate The US stock market with the world’s largest liquidity and trading volume.

Rhythm BlockBeats recently interviewed Sam Bankman-Fried (hereinafter referred to as SBF), the co-founder of FTX, and talked with him about what difference FTX’s latest equity token product will bring to Amber?

Rhythm BlockBeats: This year’s U.S. stock market is extremely hot, especially on Nasdaq. Many targets are record highs. In addition to the traffic perspective, what other factors have prompted FTX to introduce U.S. stock trading?

SBF: The introduction of U.S. stock trading will make FTX one of the few platforms that cover the global secondary market of all categories. The trading categories include cryptocurrency, fiat currency, and stocks, and trading tools include spot, futures, and OTC. This also gives cryptocurrency users the opportunity to trade stocks, and vice versa, stock investors can also access cryptocurrencies.

Rhythm BlockBeats: Are there any tendencies in the selection of US stocks? There are currently TSLA, AAPL, and other assets that belong to the field of technology. Can U.S. stock transactions that can be understood as FTX be more inclined to technology assets?

SBF: Global digitization is becoming more and more obvious, and the performance of the technology sector targets is quite outstanding, which is why the first six stocks in the S&P 500 (S&P 500 Index) are all technology assets. We will provide whatever products users need most. Looking at the world, technology companies are now the most valuable and most acceptable assets.

Rhythm BlockBeats: Can you share the underlying architecture of this product? In order for users to have 0.1 TSLA stock tokens, how does FTX do?

SBF: We cooperate with CM-Equity, they are responsible for stock custody. FTX provides tokens backed by these stocks, and users can trade in odd shares of U.S. stocks through token trading. At the same time, users can also exchange tokens for corresponding stock assets through CM-Equity.

Rhythm BlockBeats: One of the issues that everyone is most concerned about is compliance. Can you briefly introduce how to achieve compliance through partners? Will FTX U.S. stock equity trading restrict users in China?

SBF: CM-Equity is a compliant financial institution in Germany with a C-end stock trading license. FTX launched this US stock trading product together with them. CM-Equity can perform stock custody, and it needs to complete KYC, compliance, and transaction supervision. FTX does not provide trading services in restricted areas, including the United States. At the same time, FTX also requires KYC Level 2 users to be able to trade. At the same time, users are also encouraged to evaluate this product according to their personal situation and region.

Rhythm BlockBeats: Another issue of concern is handling fees. Tiger Securities, a popular US stock trading platform in China, actually uses IB services, so users will have two parts of handling fees, respectively for Tiger and IB and FTX. How will the US stock pass transaction fee be charged?

SBF: FTX only charges standard rates on stock transactions. Unlike most brokers on the market, FTX is not a single dealer platform. Any user can inject liquidity on FTX. In other words, the liquidity of all users and market makers can be aggregated on the FTX platform. . Some people will use IB for hedging, some will use other platforms, and some may trade directly on the NYSE.

Rhythm BlockBeats: In the global secondary market, apart from US stock trading, does FTX have other plans? For example, mainstream products like silver and rubber?

SBF: Yes, we are working on this part of the layout.

Rhythm BlockBeats: FTX U.S. stock pass trading will be a 7×24-hour market, but U.S. stocks are closed. Will the fluctuation of U.S. stock pass price during the U.S. stock closing time affect the pre-market price of US stocks?

SBF: The price of stock tokens on FTX is regulated by the market. I think the ideal situation is when the U.S. stock market is closed, FTX’s U.S. stock pass trading does not have much liquidity, and the volatility should be very sharp at the opening. But everything depends on the relationship between supply and demand, and also on what signals traders pay more attention to.

Rhythm BlockBeats: Will the tokenization of traditional assets become the trend of cryptocurrency trading platforms? Recently, SBF has also made many actions, such as investing in Maizi Wallet. What is SBF’s vision for FTX?

SBF: I’m not surprised by this, although a lot of operations and compliance work are required at the start. My ultimate vision for FTX is to become the world’s leading trading platform that can provide any product users want to trade. We do everything possible to integrate all categories of commodities into trading products, so that FTX can cover all secondary markets as much as possible.