Brokerage Firm DriveWealth Breaks into Crypto Trading
Updated · Feb 21, 2022
On Monday, embedded investing firm DriveWealth announced its expansion into crypto trading. The company’s offering will cater to its partners and their retail investors.
Pushing into Crypto Trading
US-based stock brokerage firm DriveWealth has announced its entrance into the cryptocurrency industry with the launch of two subsidiaries. The embedded finance company acquired the subsidiaries, DriveLiquidity and DriveDigital, with the aim of handling and executing cryptocurrency trades.
New Jersey-based DriveWealth is backed by Softbank, a Japan-based multinational conglomerate. It was founded a decade ago and was valued at $2.85 billion in fundraising last year.
The launch of DriveWealth’s new crypto-focused subsidiaries comes after it completed the acquisition of startup company Crypto-Systems. The digital assets exchange and trading solution will allow DriveWealth to offer Bitcoin and Ethereum trading from April or May.
DriveWealth CEO Bob Cortright says the expansion is motivated in part by transaction spreads on some existing exchanges.
“It is unsustainable, I mean, customers trading on Coinbase, trading across this transaction spread, it’s too much,” Cortright said to CNBC. “As regulatory environments tighten around crypto and customers get more focused on spreads and efficiency, we can’t continue in a world where you can charge 200 basis points on a transaction.”
Cortright referenced Coinbase, the biggest US-based crypto exchange. The exchange uses a system based on trade size and payment methods to charge retail customers.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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