Abra, the US-based cryptocurrency startup, is adding a feature on its app that will allow users to buy traditional investment instruments. Buy Stocks Using Abra – it’ll be possible now!
Announced today, Abra said that the app will utilize the Bitcoin blockchain and smart contracts technologies to support small fractional investments in stocks, specifically, exchange-traded funds (ETFs). The app offers investments in 50 fiat currencies and over 30 cryptocurrencies.
“Just as consumers can own a fraction of a Bitcoin, they can soon use Abra to own fractions of high-priced stocks and ETFs,” the firm said.
Abra will make this feature available to investors in over 155 countries. Abra will continue to offer zero trading fees for the remainder of 2019 on stocks and ETF investments. The minimum investment cost is $5. Users can sign up for early access on the company website.
At first, Abra said that they will offer 50 new investment assets, including stock from Facebook, Apple, Amazon, Google, Netflix; commodities like SPDR Gold Trust; ETFs like Vanguard Grwoth and the S&P 500; and indexes like the Russell 2000.
The app is non-custodial – Abra does not have access to nor store user funds. The funds will be stored on the Bitcoin blockchain, making transactions “more secure and private than centralized databases used by most crypto exchanges and wallets.”
By using this system based on blockchain and smart contracts, Abra can peg the value of “anything with a reliable price feed” to the price of Bitcoin.
Bill Barhydt, Abra’s CEO, said:
“We are building bitcoin-backed investing products because, for the first time, we can truly democratize access to investment opportunities at global scale. It shouldn’t matter where you live or how much you earn to be able to make investments and participate in capital markets.”
Abra was founded in 2014, and is backed by notable investors such as American Express Ventures, Foxconn Technology Group, Arbor Ventures, and others. In October, Abra launched a new token aimed to offer investors more exposure to the cryptocurrency market. The token tracks the top-10 cryptocurrencies and essentially allows investors to invest in all ten at once via fractional investing.
What do you think? Do you currently use the Abra app? Do you plan on using your crypto profits to diversify into traditional markets? Or vice versa – using profits from traditional market products and use the profits to buy cryptocurrency? Let us know what you think and plan to do on our Facebook page!