Interactive Brokers taps Paxos to launch crypto trading
Interactive Brokers Group, Inc. (NASDAQ: IBKR) is launching low-cost cryptocurrency trading to its clients via partnership with New York-based exchange and stablecoin issuer, Paxos.
In particular, IBKR has partnered with Paxos for its cryptocurrency features. The US-listed broker’s customers will be able to buy, hold and sell a handful of crypto assets — Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
Through Paxos, Interactive Brokers clients will be able to trade cryptocurrency at a commissions of just 0.12% – 0.18% of trade value, with a $1.75 minimum per order. Plus, there are no added spreads, markups, or custody fees.
“As financial markets evolve, sophisticated individual and institutional investors are increasingly seeking out allocations to digital currencies as a means of achieving their financial objectives. In giving our clients access to cryptocurrency trading, we recognize the need to meet the growing investor demand to trade cryptocurrency alongside other asset classes in a convenient and low-cost way,” said Milan Galik, CEO at Interactive Brokers.
IBKR’s foray into the digital asset space is noteworthy due to the firm’s reputation for serving more sophisticated clients. The discount brokerage, which counts nearly 1.49 million accounts, joins the no-fee app Robinhood as the only US brokers offering direct trading in cryptocurrencies.
The founder and chairman of Interactive Brokers, Thomas Peterffy, revealed in July that he purchased some cryptocurrencies. The billionaire explained that he is unsure of crypto future, but his company has to step in as clients are showing a growing demand for digital assets services.
Paxos’ status as a licensed financial services company in the US allows it to offer different products, such crypto trading and settlement, and custody services. Further, the firm can issue tokenized securities and also its customers to access the traditional banking system.
The unique position has enabled Paxos sign big enterprise clients, such as Revolut, Crédit Suisse, Société Générale and StoneX. It has also joined forces with the world’s most influential crypto exchange, Binance, to secure the NY regulator’s approval to launch a USD-backed stablecoin.
“Consumer interest in accessing digital assets through trusted intermediaries is driving a shift in the financial industry. Paxos provides the regulated blockchain infrastructure to ensure enterprises can enable crypto safely and with reduced risk. Our collaboration with Interactive Brokers allows experienced investors to have fast, reliable access to the digital economy for the first time,” added Charles Cascarilla, CEO and Co-Founder of Paxos.