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FTX exchange ‘working on a stablecoin’, according to CEO Bankman-Fried

By Darius McQuaid

Edited by Charlie Mellor

14:33, 27 October 2022

A smartphone displays the logo of FTX in front of a screen showing the FTX website
Binance and Coinbase already have their own stablecoins, unlike FTX at present – Photo: Getty Images

Sam Bankman-Fried, CEO of cryptocurrency derivatives exchange FTX, has revealed that the company is “working on a stablecoin” in an interview with The Big Whale.

Other big crypto exchanges already have their own stablecoins. For example, Binance, the world’s largest cryptocurrency exchange by trading volume, has Binance USD (BUSD) and Coinbase, the largest cryptocurrency exchange in the US, in a collaboration with Circle, launched the USD Coin (USDC) stablecoin.  

When asked if FTX – which operates its own native crypto, the FTX token (FTT) – could launch its own stablecoin, Bankman-Fried responded: “We certainly could. We know how to do it. We’ve held off on doing it because, we think to some extent, collaboration on that could be really powerful.

“But I think you will probably be hearing something from us on that topic in the not too distance future.”

FTT to USD 

FTX’s first bear market

Bankman-Fried revealed that the current crypto bear market is the first one FTX has ever experienced.

SOL/USD

170.35 Price
-0.030% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

DOGE/USD

0.13 Price
+6.300% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,503.78 Price
-0.180% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

XRP/USD

0.60 Price
+3.790% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

The CEO of FTX added: “You know, one of the main characteristics of crypto platforms is that our operation is not impacted by the market downturn any more than that.

“Every day we continue to grow the business, create services and new tools for customers. So, yes, the markets are less dynamic, things are a little more tense, but in the end, it doesn’t take us off course.”

He remained optimistic regarding the future of the crypto industry as “the industry keeps growing. There are more and more use cases, the technology is improving, and the regulation is gradually being put in place”.

The collapse of terra

When the stablecoin terrausd (UST) lost its peg to the US dollar in May 2022, it fed into the current crypto bear market and resulted in numerous crypto firms going bankrupt, including crypto brokerage and leder Voyager Digital.   

However, Bankman-Fried stated that the FTX purchase of Voyager’s assets after it filed for bankruptcy helped to stabilise the markets.

The CEO also said that these “acquisitions will allow FTX to strengthen its position in the United States and continue to gain market share”.  

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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