Abra app introduces investment options in stocks, commodities and ETFs for its users
In an interesting development on Wednesday, US-based crypto startup Abra announced the introduction of a new feature that would allow users anywhere in the world the opportunity to invest in traditional stocks, commodities and ETFs, all from the Abra app. The news was made public by the startup in its official blog on Wednesday. The company is planning to start with popular stocks and add more global assets in the coming months.
The US-based startup has announced that investors in more than 155 countries will be able to 50 new traditional investment assets with zero trading fees through the rest of 2019 using the leading cryptocurrency. This new feature will give its users one-top shop for their investment needs.
As per the blog, stocks and ETFs investment features in the Abra platform are based on a new investing model called Crypto Collateralized Contracts (C3s), which allows investors to make investments in stocks or any other asset by using Bitcoin (BTC) and smart contracts. This is a big breakthrough and one of its kind use for cryptocurrencies.
Crypto-collateralized contracts allow an investor to easily gain investment exposure to any asset, such as a stock, bond, or another cryptocurrency by simply using Bitcoin for investment.
The blog adds:
“Crypto-collateralized contracts leverage the programmable aspects of bitcoin to create a new universe of secure and decentralized finance.”
The blog further notes that Abra hedges away the risk associated with the contracts in the open market at the moment the consumer creates the investment. It is also worthwhile noting that Abra has experience of successfully processing hundreds of millions of dollars-worth of these investment contracts and to its credit it has never lost money on it.
Ina similar development last month, the U.S. state of Wyoming introduced a bill that would allow issuance of blockchain-based tokens that represent stocks. If passed, the legislation is expected to come into force from July 1, 2018.
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