Crypto.com Launches Tokenized Derivatives Tracking 1,500 US Stocks, ETFs
Summary
- Crypto.com has launched tokenized derivatives tracking the prices of about 1,500 US stocks and ETFs.
- The product has a minimum investment of $1 and supports 24-hour trading, while offering synthetic exposure to stock and ETF prices.
- The product structure may include value adjustments reflecting dividends, but does not guarantee actual shareholder rights.
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Global cryptocurrency exchange Crypto.com has launched tokenized derivatives tied to the prices of about 1,500 US stocks and exchange-traded funds.
CoinDesk reported on August 12 that the company rolled out the service for eligible users in the European Economic Area and other permitted markets. The offering gives users exposure to US stocks including Apple, Nvidia and Tesla, as well as ETFs such as SPDR Gold Shares (GLD) and iShares Silver Trust (SLV).
The minimum investment is $1, and the products can be traded 24 hours a day. The new service consists of derivatives issued by Crypto.com affiliate Foris Capital and provides synthetic exposure to stock and ETF prices.
Buying the product does not make investors actual shareholders of the underlying companies. Investors do not receive legal ownership of the underlying securities, voting rights or other shareholder rights.
Depending on the product structure, the value may be adjusted to reflect dividends. The underlying assets backing the product are held by US broker-dealer Alpaca.
The launch is part of Crypto.com's business expansion following its acquisition of Foris Capital in May. The deal gave Crypto.com a Markets in Financial Instruments Directive, or MiFID, license needed to offer financial products in the European Union.
Kraken, Bitget, Robinhood and Bybit also offer tokenized stock trading services to users outside the US.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul