The startup Loft is launching the world’s first Lightning Network-based platform for trading stocks and commodities.
Trading with Lightning Network on Loft
Thanks to this platform, it will be possible to use Bitcoin to invest in shares of various companies, as well as commodities such as raw materials, gold, silver and wheat, without having to carry out identity verification.
Among the stocks available will be Tesla, Apple, Amazon, Twitter, but also Intel, BMW, Virgin Galactic, Moderna, Boeing, Societe Generale, Airbus, and others.
For commodities, ETFs from Vanguard and VanEck will be available on oil, gold, lithium, real estate, robotics, and so on.
Lightning Network enables the creation of smart contracts using BTC, in this case to trade them for collateralized tokens in various assets.
Loft’s platform is designed to be very easy to use, and the exchange pairs are all denominated in Bitcoin (BTC). After registering and depositing BTC it is possible to start trading immediately.
The goal of this project is to help create a world where finance is decentralized, and anyone can invest, being free to move their capital in BTC without limits and boundaries.
The advantages of Loft
The platform will allow leverage of up to 100x, and will also allow access to the foreign exchange market (ForEx), the most traded and liquid market in the world.
Tokenization of financial assets is probably the best way to make them truly accessible to everyone, especially on crypto platforms like this one that do not use fiat currencies.
In addition, Lightning Network allows for almost immediate transactions, and at a very low cost, almost negligible.
The only big unknown is the coverage of the tokenized assets, which should be and always remain 100% collateralized with the underlying.