TOP > News > Abra Now Lets You Buy US Stocks Like Netflix, Apple, Amazon, Etc
April 26, 2019 Published

Mobile wallet service Abra has finally added the previously announced feature of buying US stocks in exchange for bitcoin and fiat in its app.




April 26, 2019 – Mobile wallet service Abra has finally added the previously announced feature of buying US stocks in exchange for bitcoin and fiat in its app.

Abra users in the Philippines who updated their apps can now add US stocks in their Abra portfolio.

  1. Go to “Manage Assets” on the top right of the app.
  2. Select “Stocks”.
  3. Click the US Stocks you like and the tap on “Save”.
  4. The stocks will now show on your dashboard.

How is this possible? Abra calls it “synthetic currency“, which allows users to gain exposure to crypto assets, exchange-traded funds, and even stocks.

For simplicity’s sake, let’s say if the user deposits $100, Abra will immediately convert it to $100 worth of bitcoin in the background, although the app will continue to display the fiat $100.

If the value of bitcoin against the dollars goes up or down, Abra will cover the difference so that the user will always have $100 backed by $100 worth of bitcoin.

With stocks, the process is the same, only that we are buying shares (stocks).

For example, if the user buys 100 shares worth of Netflix stock, with 1 share = $1 (This is just a representation), the 100 shares are worth $100. Since the money is actually converted into bitcoins, then the 100 shares are backed by $100 worth of bitcoins in the background, while the app continues to display that the user has 100 shares worth $1 each for $100 in total.

Now, if tomorrow, Netflix stock becomes $2 per stock, then 100 shares are now worth $200. Because the shares are backed by bitcoins, Abra will put the necessary amount of bitcoins to your account so that your 100 shares (that is) now worth $200 is backed by $200 worth of bitcoins.

Click here if you want to download Abra.

Abra confirms anyone can buy these shares of stocks for as low as $5, which opens up the opportunity for people who previously cannot access the US stock market because of regional barriers and high cost of entry. However, it is important to note that there are still risks involved so users must take caution before investing.

Disclaimer: This article is not a piece of investment advice.

This article originally appeared on BitPinas: Abra Now Lets You Buy US Stocks Like Netflix, Disney, Apple, Amazon, Etc

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4 Comments

  • Jay says:

    Does Abra also give out dividends in a case a stock gives out dividends or will this be purely based on price action alone?

    • Mike Mislos Mike Mislos says:

      Hi Jay, update on my original comment, according to Abra, the answer is YES.

      “If you invest in stocks/ETFs that pay dividends, and you are invested by close of business on the business day before the ex-dividend date, we will provide dividend payouts as well. We will distribute dividend payouts by adding the dividend value to your usd wallet within your abra wallet.”

      Original Comment: Hi Jay. I am contacting Abra for confirmation. But from their Terms page, It seems they do, or rather, they “will” at some point: https://www.abra.com/terms-of-service-non-us/

      “Cash Dividend Payment Terms – Cash dividend payments on individual stocks or ETFs (if applicable) purchased up to one business day prior to the published ex-dividend date and held in the User’s wallet on the published record date will be paid within 5 business days after the declared payment date. Cash dividend payments will be prorated for fractional shares and rounded down to the nearest cent. Abra PTPC reserves the right to cancel cash dividend payments for amounts less than the minimum amount that can be sent on the blockchain of the underlying cryptocurrency. During Early Access, Abra PTPC may choose not to pay out dividends until our Equity Product is in general availability.”

      In another post: https://medium.com/chainrift-research/abra-is-introducing-kyc-less-stock-investing-with-cryptocurrencies-c4ff60828121

      “The Abra FAQ explains that, when customers purchase stocks on Abra, they are purchasing exposure to the stocks without owning the stocks directly. “This is similar to a Gold ETF where you gain exposure to the price fluctuations without actually owning the underlying asset — gold.” Abra customers receive dividend payouts, but of course not voting rights.”

  • Bill Beatty says:

    Does the share holder actually own Netflix stock or is this just like a binary options where you’re gambling on the price of stocks?

    • Mike Mislos Mike Mislos says:

      Hi Bill! What you said seems to be inline with the review from TheNexWeb though:

      https://thenextweb.com/hardfork/2019/02/06/abra-buy-stocks-bitcoin-etfs/

      “From a user experience point-of-view, it’s very simple. You put money in, chose something you want to invest in, and wait to see what happens. Hopefully you’ll make a profit.

      In reality, what Abra is offering feels more like what trading apps like BUX or Plus500 provide. It should be noted that most users who invest using these apps lose out. In some cases, investors have lost thousands of times what they originally invested.

      While Abra might be taking on the headache of translating complex trading instruments into a simple, easy to understand app which could theoretically benefit users and open a previously hidden world to many people, it’s not without its risks.”

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