Abra: With Bitcoin in the traditional stock market

the The California-based FinTech company Abra has announced a new Feature for its App. The over 500,000 User should be able to starting to invest in Bitcoin indirectly, in classic financial products like stocks and ETFs.

Max Halder
On 7. February 2019BTC$3.394,90 -0.36% part Facebook Twitter LinkedIn xing mail

Abra was founded in 2014 by Bill Barhydt, a former Software developer from Goldman Sachs. In addition to the headquarters in the Silicon Valley, the company operates a branch office in Manila, the capital of the Philippines. So far, 50 Fiat - and over 30 crypto with Abras App currencies to buy. Now, the company wants to share the purchase of stocks and ETFs, even of fraction thereof. In a conversation about 50 assets, such as shares of Facebook, Apple, Amazon, Google and Netflix, as well as the ETFs are SPDR Gold Trust and the S&P 500.

target audience: Real Bitcoin-Disciples

The target audience for this new function according to Barhydts on the one hand, the "Bitcoin True-Believers". In addition, the Feature people from Latin America and Southeast Asia in order to facilitate access to Western investment markets.

We design financial products to Bitcoin-based, for now, we can democratize for the first Time, access to the Investment on a global scale. It shouldn't matter where you live or how much you earn, if you invest and the capital markets want to participate,

said Bill Barhydt. So you could start with an investment sum of five dollars. This year should also apply no charges. Thus, one possibility would be to invest on the basis of Bitcoin in the traditional financial products.

What is the "Bitcoin True-Believers", relying Abra to its business principle of "Non-Custodial". This means that Abra has no access to the assets of the customer and the stores. The power of the "transactions more secure and anonymous than it is in centralized databases. This is the Problem of most of the Exchanges," says the CEO, "as long as the users of Abra in crypto currencies to hold, you can remain completely anonymous." The raises in times of Know Your Customer, of course, questions. But Barhydt is well versed as a former employee of Goldman Sachs in legal matters, expect no Trouble from the SEC, the American financial Supervisory authority. Finally, Abra is neither "guardian of the clients in an even Broker. Us shares are sold or as securities are traded. The only thing that we offer to our customers are betting on such transactions,“ said Barhydt.

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crypto-Collateralising

What makes the new division Abras unique, is the concept of "crypto-Collateral-ization" of. This explains Abras in the following example: "If you want to invest $ 1,000 in Apple shares, you will provide Bitcoin to the value of 1,000 US dollars on a contract. Rises or the price of Apple falls in comparison to the US Dollar, is added according to Bitcoin to the initial sum or deducted. If you cancel the contract, let's say you sell the Apple stock, the value of the shares in Bitcoin. The value in Bitcoin can then be easily or transparently converted into US dollars or into any other asset class,“ says the Homepage of Abra. You don't have so in the end, the shares or the securities; rather, one can think of this as a "Trustee Account [to the] automated business actions hang for a Deposit or A withdrawal, depending on how the bet is developed," he says.

conclusion

in addition to the target groups of the new Features that were also customers from Europe features only in the recent past, a simpler Handling. Thus, two additional flow channels of the main stream of Bitcoin are, in principle, be created. However, the question arises on closer examination, whether the main stream Bitcoin or not "financial institutions" means. With one eye you can offers quite the potential supply. With the other you should keep, however, a possible infiltration of the crypto universe is a former Goldman-Sachs employee critically.

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