Abra Crypto Wallet has come up with a revolutionary feature to allow users across the world to access US financial markets using Bitcoin.
San Francisco based Crypto wallet Abra has introduced a new feature which allows users from 155+ countries to invest in 50+ traditional stocks including Facebook, Apple, Google, Amazon; ETFs like Vanguard Growth, SDPR Gold Trust and even indexes like S&P 500 for as low as $5.
Bill Barhydt, CEO of Abra told the Block:
“Our vision for Abra is to create a single app that serves as the go-to investing app for the globe, This is just our first announcement, over time you will see other services in the banking arena to democratize access to financial service.”
Abra is able to navigate through strict US regulations and KYC/AML laws as it a non-custodial wallet which means unlike Coinbase, Abra does not hold on to users funds.
Investors can sign up here to get early access to the product, the company is also offering zero trading fees for the rest of 2019.
How Does it work?
Abra uses a complicated process in the back end to hedge and short to maintain its Bitcoin position. But on the front end, the dollar value of the user’s cash deposits will remain the same as Abra adds or subtracts the number of Bitcoins necessary to maintain the peg.
Similarly, when a user puts in cash to buy stocks, Abra immediately converts the cash into Bitcoin. It uses smart contract algorithms to keep Bitcoin’s notional value tied to the price of the stock. So for the user, the experience is similar to buying and selling stocks without ever knowing what happens in the back end. The profit or loss will depend on how the specific stock performs.
Users can send payments to Abra using bank transfers, credit cards, and Cryptocurrencies. The app currently boasts having over 500,000 users and features multiple fiat and Crypto currencies which can be exchanged on the platform.
Bill Barhydt Tweets:
Huge day for @AbraGlobal and Bitcoin.
Abra rolling out stock and ETF investing using bitcoin
Fractional shares plus no limits and $5 minimum
No fees for 2019https://t.co/mFEY2vKLRF
— Bill Barhydt (@billbarhydt) February 6, 2019
Did you like the news you just read? Please leave a feedback to help us serve you better