Crypto Wallet And Exchange App Abra To Let Users Invest In Fractions Of Stocks, ETFs

Crypto Wallet And Exchange App Abra To Let Users Invest In Fractions Of Stocks, ETFs

Abra, US-based cryptocurrency wallet and exchange app on Wednesday stated that it is planning to add a new feature to its blockchain-based app using which all its global users will be able to buy portions of traditional investment instruments. Launched in 2014, the crypto startup is backed by some notable market investors that include Foxconn Technology Group, American Express Ventures, and Arbor Ventures etc.

During an announcement made on 6th Feb 2019, the company mentioned that to support fractional investments in exchange-traded funds (ETFs) and stocks, the app will utilize the features offered by Bitcoin blockchain and smart contracts technology. The exchange and wallet-based app as of now already offer investment in over 30 cryptocurrencies and 50 fiat currencies.

The firm also stated that “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 will offer zero trading fees until the current year ends for the investment of ETF and stock. Apart from that, investors in over 155 countries will be able to start trading by making a minimum investment of $5 after the addition of new feature.

Crypto Wallet And Exchange App Abra To Let Users Invest In Fractions Of Stocks, ETFs

Stocks from major firms like Apple, Google, Facebook, Amazon, Netflix; ETFs like S&P 500 and Vanguard Growth; indexes like the Russell 2000; and commodities like SPDR Gold Trust, will be offered under 50 new investment assets under the initial roll-out.

Bill Barhydt, the company’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.”

Since the Abra app is non-custodial, it won’t be able to store or have access to user’s funds. In fact, to make transactions “more secure and private than centralized databases used by most crypto exchanges and wallets” all the funds will be stored on the Bitcoin blockchain, the firm added.

The company in the month of October last year launched a new token that focused on investors by letting them more exposure to the cryptocurrency market. This newly launched token allowed the investors to invest in the top-10 cryptocurrencies at once by providing them the real-time movement of the top-10 cryptocurrencies by its market capitalization.