Investors Could Buy Stocks Using Their Bitcoin Through Abra
Abra, the cryptocurrency-based remittance platform announces their plan to introduce a new platform that will enable investors to buy stocks with cryptocurrencies like Bitcoin (BTC)
With this all-in-one application investors can invest in fiat, stocks, exchange-traded funds (ETFs), and cryptocurrencies. The CEO of Abra, Bill Barhydt, said:
“We’re going to start with popular US stocks and ETFs and add more global assets in the coming months. Of course, all of the great features for investing in cryptocurrencies and fiat currencies remain fully integrated as well.”
Basically, the investors are placing Bitcoin as collateral to invest in a single stock or an ETF. If the ETF rises, more BTC will be added to their account and if it declined that BTC will be taken from their account.
There is definitely a risk involved, however, the form takes the risk in all of the contracts on the platform. As per Barhydt, the risk is carefully hedged and the system has been tested on many contracts. He stated:
“Abra has already successfully processed hundreds of millions of dollars worth of these investment contracts and has never lost money on them.”
Since the investors in the U.S. have easy access to the U.S. stock market, the said platform is not useful for them. However, investors from the regions with large unbanked populations, where it is difficult for individuals to obtain stable financial or brokerage services, Abra’s platform could be a game changer.
This is HUGE!!!!!!!!!!!!!!!! All #bitcoin-based!!!!!! Kudos to @billbarhydt & team for lassoing traditional financial assets into Bitcoin, instead of trying to pigeonhole Bitcoin into the status quo—as so many other #crypto companies are doing. Best wishes for tremendous success! https://t.co/ZXs0lhqs8Z
— Caitlin Long ? (@CaitlinLong_) February 6, 2019
Barhydt added that the intent of the platform is to provide investment opportunities to investors that don’t have the privilege of investing in the global stock market. He added:
“However, many people (billions actually) are shut out of these investment opportunities due to their geography, financial status or lack of accredited investor status, income level, or lack of trust for their local financial institutions.”
Abra’s future plans
Abra has significantly managed to improve the possibilities of spending digital assets. Before this, cryptocurrency users were limited to convert their digital assets into fiat before paying merchants or invest in an alternative market.
Apps such as Abra and Coins.ph has initiated to open the avenues for investors to invest their cryptocurrencies in stocks, pay bills, send and receive money, and purchase products on online e-commerce platforms could increase the adoption of cryptocurrencies in the long-term. Barhydt emphasized that apps objective is to aid the community:
“Having a single app for stocks, cryptocurrencies, fiat currencies and even ETFs is really compelling and something I know I will be using for the rest of my life.”
As Cryptocurrency sector continues to roll out such apps that expand the horizon of the digital assets, it can lead to mainstream adoption sooner or later.
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