FTX offers tokens for trading on select equities, which are stocks that are traded on traditional regulated exchanges. These spot tokens are backed by shares of stock held by CM-Equity, a fully regulated financial institution in Germany. If desired, these tokens can be exchanged with CM-Equity for the actual shares of stock. To trade tokenized stocks on FTX, users may need to become customers of CM-Equity and undergo their KYC and compliance process. Additionally, all trading activity may be monitored for compliance by CM-Equity. It is important to note that CM-Equity provides the brokerage services and custodies the equities at a third-party brokerage firm, not FTX Trading LTD.
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