Investors often wonder how traditional stock trading hours limit their participation. Traditional stock exchanges close at 4 PM Eastern time, creating a gap that cryptocurrency markets fill by operating 24/7. Arcus is looking to change the game for equity trading by allowing users to trade stocks on this non-stop schedule.
What does Arcus offer to traders? The decentralized exchange, developed by dYdX Labs in collaboration with Robinhood Crypto, launched on July 1. It provides spot trading for more than 95 tokenized stock tokens through the Robinhood Chain, enabling users in over 120 countries to engage in trading around the clock, without any fees.
#How does Arcus connect Wall Street with cryptocurrency?
Arcus functions as a conduit between traditional finance and decentralized finance. Instead of using conventional brokerages that only operate during daytime hours, traders can now buy tokenized assets like Tesla shares (TSLA/USDG) at any hour, even at 2 AM on a Sunday. This zero-fee structure and the absence of intermediaries allow users to retain complete control over their portfolios.
The self-custodial model is a significant aspect of Arcus. Unlike the traditional Robinhood app, which retains custody of user shares, Arcus empowers users to manage their own wallets. This means that they maintain exclusive control over their tokenized stocks.
#What are the future offerings from Arcus?
Currently, the platform supports spot trading, but it is set to introduce perpetual futures trading soon. This new addition will cover a broader range of assets including equities, cryptocurrencies, commodities, and indices. Users can potentially access leverage up to 50 times their initial stake.
An exciting feature of this futures trading will be the ability for users to pledge their tokenized stock holdings as collateral, facilitating a seamless experience. For example, one could leverage their tokenized Apple shares to secure a position in Bitcoin without the need to liquidate any existing holdings.
Arcus also plans to launch a native utility token, $ARCUS, which will be distributed to early users and the dYdX community.
#Why is this innovative for investors?
The appeal of zero-fee trading on an extensive array of stock tokens directly challenges traditional brokerage models. Additionally, Arcus opens the experience to investors across 120 countries, bypassing the common restrictions of US-based brokerages, which often focus on domestic markets.
For cryptocurrency enthusiasts, Arcus makes it easier to diversify investments by facilitating a transition between equities and digital assets. Previously, investors faced challenges like opening multiple accounts and experiencing delays in settlement times. With Arcus, the entire process is consolidated into a single platform with near-instant settlement capabilities.