SPDR S&P 500 ETF tokenized stock FTX

SPDR S&P 500 ETF, also known as SPY, is a tokenized stock that runs on the FTX platform. SPDR (Spider) is an abbreviated name for Standard and Poor's depositary receipt, an exchange-traded fund (ETF). The ETF is managed by State Street Global Advisors that keeps track of the Standard & Poor's 500 indexes (S&P 500). An exchange-traded fund or ETF keeps track of multiple stocks within an index or industry. 

SPY was the first index ETF or exchange-traded fund, and this index fully imitates at a price target of 10 ten of the S&P 500. With SPY, traders can diversify the equity market without trading multiple stocks. By holding SPDR S&P 500 ETF stocks, users are entitled to dividends of the underlying stocks. The SPY consists of assets that allocate its holdings across multiple sectors.

Tokenized stocks are equities that are traded on traditionally regulated stock exchanges. Canco GmbH (FTX Switzerland) has been authorized to provide brokerage services for tokenized stock trading. All the users who trade on tokenized stocks can also become customers of Canco GmbH by completing a simple procedure. The procedure to become a customer is to complete the KYC and other compliances. Furthermore, the platform can monitor all trading activity of the users.

To trade tokenized stocks on the platform, users need to complete the KYC level. Users need to provide the KYC documents and IP addresses in the platform. In addition, users who want to trade using tokenized stocks need to pass a test. Mechanically, the tokenized stock is just similar to spot markets. Even the transaction charges, API calls, and GUI instructions are all the same.

The SPY was first established in the year 1993.