Bridging the gap between cryptocurrencies and traditional finance is an ongoing process. While stocks and Bitcoin may share similarities, they are also very different from one another. WorldMarkets will attempt to bring both industries closer together. Their goal is to let users trade S&P100 stocks using Bitcoin.
A Bold Move by WorldMarkets
It is evident there need to be more use cases for Bitcoin. To date, it is still a speculative investment vehicle first and foremost. It doesn’t necessarily provide access to other financial markets and assets outside of cryptocurrency. WorldMarkets want to change that appeal by focusing on a completely different approach.
In their new update, the trading platform added support for stocks traded on Standard & Poor’s 100. That list includes Apple, Facebook, FedEx, and other major companies. Bitcoin holders can now obtain stocks in these companies through this platform. This move links a very speculative asset to known stocks.
It is evident this new move tries to attract institutional traders. Although it also accessible to regular holders, they will not necessarily bring a lot of trading volume right away. Bridging the gap between Bitcoin and traditional finance is a promising sign. Both industries can peacefully co-exist. Exploring interoperable opportunities may attract more people to cryptocurrencies in the long run.
Future Expansion Plans Show Promise
This is a big move for WorldMarkets, albeit not their last one. Depending on the success of this integration, additional stock markets will be supported. The team mulls adding all S&P 500 constituents to this platform in the coming months. Other markets, such as the FTSE 100 and DAX are also on the shortlist.
For Bitcoin holders, this is another way of diversifying the portfolio. Holding Bitcoin is subject to very volatile price changes. Diversifying into mainstream stocks is still a risky investment. However, these markets tend to be far less volatile compared to Bitcoin and altcoins. Giving users more options to manage and improve their financial portfolio shows how mature Bitcoin has become.
The big question is how successful this new offering will be. WorldMarkets takes a big gamble on letting Bitcoin holders access mainstream stocks. Given the lack of Bitcoin regulation in the US, bridging the gap between both industries may not be as easy as this company makes it seem. The tone is set for more competition and new opportunities. That in itself is all one can ask for.
Do you like the idea of being able to trade stocks using Bitcoin? Why or why not? Let us know in the comments below.
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