Abra used to be a financial and technology company that provides only peer-to-peer cryptocurrency transactions, has announced new features that let investors enter the trade of shares and exchange-traded funds (ETFs).
These new features are still are still for development and improvements, but Abra has already released early access to the platform. With that, investors from over 150 countries can already use Bitcoin to trade 50 new traditional investment assets. The best part is that these investors get to enjoy a zero percent trading fee.
There are various assets people can invest on ranging from stocks such as Facebook, Google, Apple, Netflix, Amazon, and also commodities that includes ETFs, S&P 500, SPDR Gold Trust, as well as indexes like Russell 2000.
The stocks and ETF features you'll find in the Abra platform are all based on the Crypto Collateralized Contracts (C3s), which is a new investing model that revolves on the idea of investors trading any asset using only smart contracts and Bitcoin.
On Abra's corporate blog, it is mentioned that the smart contracts do away the risk of investing in stock online without a deal.
“Crypto-collateralized contracts leverage the programmable aspects of bitcoin to create a new universe of secure and decentralized finance.”
Based on Hard Fork, which is a publication on technology states that Abra will be making a lot of money from their newly released investment features when it charges a spread on every cryptocurrency that is exchanged in their platform. Primarily, the price spread is based on the interval of the asset's lowest and highest price points at the time of the trade.
While the Abra's new features sound exciting and enticing, Hard Fork notes that Abra's platform will become similar with other trading apps like Plus500 and BUX. It has time and again been reported that users have lost a significant amount of funds using these trading apps.
As Hard Fork described it in their publication, when the user deposits an amount into the Abra platform, these funds will be automatically converted into Bitcoin. There is a portion in the Abra app that shows one's balance in dollars, but the amount will already be added in one's Bitcoin wallet.
Since the purpose of these new features is market investments, depending on the current price of the stock or ETF, one's funds can either rise or fall.
Ultimately, the nature of investments dictates that there's going to be risks along the way. With that, this does not seem to be a problem for most investors.
While these new investment features is an excellent breakthrough for Abra, however, it's not the first company to incorporate investment and trade with their crypto platform. tZero is another cryptocurrency firm that has recently enabled its investors to trade security tokens by creating a digital securities brokerage account at Dinosaur Financial Group.