Bessie Liu

<div id="highlights-block_62f29095b2a51" class="highlights">
 <ul>
 <li>The company will receive a commission of 0.12%-0.18% on every transaction</li>
 <li>Clients can now trade LINK, MATIC, UNI and AAVE</li>
 </ul>
 
</div>



Automated global electronic broker Interactive Brokers announced the expansion of its crypto trading features today. Additional coins including LINK, MATIC, UNI and AAVE have also been added.



Customers now have access to 24/7 trading through an enhanced web application available from Paxos Trust Company and can hold both USD and cryptocurrencies in their Paxos accounts.&nbsp;



Steve Sanders, executive vice president of marketing and product development at Interactive Brokers, <a href="https://www.businesswire.com/news/home/20220809005087/en/" target="_blank" rel="noreferrer noopener">said in a statement</a> that these latest features would “give our clients a simple and low-cost way to access crypto markets at any time.”



Interactive Brokers customers who trade with Paxos will be paying a commission of 0.12%-0.18% of their trade value — with a minimum of $1.75 per order. The new offering <a href="https://www.cointracker.io/blog/2019-crypto-exchange-fee-comparison" target="_blank" rel="noreferrer noopener">is cheaper</a> than a handful of other crypto exchanges including <a href="https://cms.blockworks.co/tag/coinbase/" target="_blank" rel="noreferrer noopener">Coinbase</a> and <a href="https://cms.blockworks.co/tag/gemini/" target="_blank" rel="noreferrer noopener">Gemini</a> which both charge a 1.49% transaction fee for market orders.



“No added spreads, markups, or custody fees will be applied,” an Interactive Brokers spokesperson said in a statement.&nbsp;



This latest expansion will be available to a handful of institutional accounts and Interactive Broker customers in over 100 countries, including the US, with individual or joint accounts.



Interactive Brokers, <a href="https://www.stockbrokers.com/review/interactivebrokers" target="_blank" rel="noreferrer noopener">a favorite</a> of professional traders, provides automated trade execution and custody of securities, commodities and foreign exchange through its platform in over 150 markets worldwide. Headquartered in Greenwich, Connecticut, the company has almost 3,000 employees and has offices across the Americas, Europe and Asia.



The company <a href="https://cms.blockworks.co/interactive-brokers-launches-crypto-trading-through-paxos/" target="_blank" rel="noreferrer noopener">first launched</a> digital asset trading through Paxos in September 2021. Giving customers in the United States access to trading bitcoin, ether, litecoin and bitcoin cash. 



Since then, the multinational brokerage firm has been actively expanding its services worldwide. Most recently it <a href="https://cms.blockworks.co/interactive-brokers-launches-crypto-trading-services-in-hong-kong/" target="_blank" rel="noreferrer noopener">partnered with OSL</a>, a digital asset platform based in Hong Kong regulated by the Securities and Futures Commission, to bring its virtual asset services to professional clients in the region — making its mark in a notoriously difficult market to break into.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

Interactive Brokers

Interactive Brokers Expands Crypto Trading Features

Shalini Nagarajan

<div id="highlights-block_62a31e89db559" class="highlights">
 <ul>
 <li>Licensed crypto exchanges in Hong Kong are allowed to service professionals only</li>
 <li>Virtual assets are complex products that are likely not understood by retail investors, regulator says</li>
 </ul>
 
</div>



A partnership between two digital asset brokerages enables a new route for professional investors in Hong Kong to dabble in cryptoassets.



OSL, a Securities and Futures Commission (SFC)-regulated digital asset platform, has agreed to provide Interactive Brokers a platform to offer virtual asset services to its professional clients, according to an <a href="https://bc.group/press-release/osl-digital-securities-and-interactive-brokers-sign-agreement-osl-to-provide-exclusive-virtual-asset-services-for-interactive-brokers-in-hong-kong/" target="_blank" rel="noreferrer noopener">announcement</a> on Thursday.&nbsp;



In late 2020, OSL became the first firm <a href="https://www.prnewswire.com/news-releases/osl-receives-license-from-hong-kong-regulator-becomes-worlds-first-sfc-licensed-listed-insured--big-4-audited-digital-asset-trading-platform-301193081.html" target="_blank" rel="noreferrer noopener">to receive permission</a> from Hong Kong’s regulatory authority to provide a digital asset trading platform for institutions. It managed to get licensed after undergoing vetting requirements. Interactive Brokers’ partnership with the exchange highlights its weight in the market.



“Investors worldwide are rallying to digital asset markets, and the collaboration with OSL comes at a key moment in the development of the regulated digital asset ecosystem in Hong Kong,” David Friesland, head of Asia Pacific at Interactive Brokers, said in a statement.



In January this year, the Hong Kong Monetary Authority said only SFC-licensed financial institutions will be allowed to conduct the business. In a <a href="https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2022/20220128e3.pdf" target="_blank" rel="noreferrer noopener">notice</a>, the regulator said virtual assets should be considered complex products that are not likely to be understood by retail investors. And so, they must be <a href="https://cms.blockworks.co/hong-kong-restricts-trading-of-crypto-etfs-to-professional-investors-only/" target="_blank" rel="noreferrer noopener">restricted to professionals</a>.



“Hong Kong has one of the world’s highest concentrations of institutional and professional investors, as well as a clear regulatory regime around digital assets,” Wayne Trench, OSL’s chief executive, said in a statement.



Hong Kong was a hotbed for some of today’s most well-known blockchain and crypto businesses including Crypto.com, BitMEX and Bitfinex. Popular stablecoin Tether too was <a href="https://messari.io/asset/tether/profile" target="_blank" rel="noreferrer noopener">launched</a> there in 2014. But strict regulations, including the rule that restricts services to professional investors, led some companies to jump to other markets.



The SFC recently <a href="https://cms.blockworks.co/hong-kong-securities-and-futures-commission-calls-for-regulation-of-nfts/" target="_blank" rel="noreferrer noopener">took aim</a> at non-fungible tokens, warning that if investors “cannot fully understand them and bear the potential losses, they should not invest in NFTs.&#8221; China’s <a href="https://cms.blockworks.co/no-china-didnt-ban-crypto-its-just-pushing-exchanges-offshore/" target="_blank" rel="noreferrer noopener">caveats</a> on cryptocurrencies have also muddled Hong Kong’s role as a hub for fintech innovations. 



Many crypto exchanges have applied to Hong Kong’s licensing agreement, but OSL has been the only successful one so far.

exchanges

Interactive Brokers Launches Crypto Trading Services in Hong Kong

Casey Wagner

<div id="highlights-block_613fbddc2ce02" class="highlights">
 <ul>
 <li>Interactive Brokers Group users in the US will be able to trade bitcoin, Ethereum, litecoin and bitcoin cash </li>
 <li>The online retail brokerage revealed plans to launch crypto trading in June </li>
 </ul>
 
</div>



Interactive Brokers Group has launched digital asset trading through Paxos Trust Company, the online retail brokerage announced Monday.&nbsp;



Customers in the United States can now trade and custody bitcoin, Ethereum, litecoin and bitcoin cash in addition to traditional equities, bonds and exchange-traded funds.&nbsp;



“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,” said Milan Galik, CEO of Interactive Brokers, in a statement.&nbsp;



Commission fees will be between 0.12% and 0.18% of trade value, depending on monthly volume. The minimum order will be $1.75 and there are no added spreads, markups, or custody fees, Interactive Brokers said.&nbsp;



Interactive Brokers Chairman Thomas Peterffy <a href="https://cms.blockworks.co/interactive-brokers-reveals-plan-to-offer-crypto-trading/" target="_blank" rel="noreferrer noopener">revealed in June</a> that the platform would launch cryptocurrency trading in coming months, citing growing investor demand for exposure to the asset class.



Interactive Brokers joins Robinhood in offering the service. Competitors Fidelity and Charles Schwab currently offer exposure to crypto futures products, but not the assets themselves.



“Interactive Brokers remains committed to providing breadth of product globally, advanced technology and superior pricing,” said Steven Sanders, EVP of marketing and product development at Interactive Brokers, in a statement. “Adding access to cryptocurrency trading further delivers on our mission to provide active traders and sophisticated investors with powerful trading tools and a wide range of products at low cost.”



Are you a UK or EU reader that can&#8217;t get enough investor-focused content on digital assets?<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a> in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket. <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.

cryptocurrency

Interactive Brokers Launches Crypto Trading Through Paxos

Ben Strack

<div id="highlights-block_60c0f6fbdb099" class="highlights">
 <ul>
 <li>Brokerage firm with more than 1.3 million customer accounts expects to provide crypto trading by end of summer</li>
 <li>Competing brokerage Charles Schwab said last month it would consider more options in market upon increased regulatory guidance</li>
 </ul>
 
</div>



Interactive Brokers expects to offer cryptocurrency trading by the end of the summer, Thomas Peterffy, the firm’s chairman and CEO revealed Wednesday during the Piper Sandler Global Exchange and FinTech Conference.



The Greenwich, Connecticut-based brokerage firm conducts business in 135 markets worldwide and, along with its affiliates, executes about 3.3 million trades per day, according to its website. The firm reported in April that customer accounts rose 74% from the year-ago quarter to more than 1.3 million.&nbsp;



Interactive Brokers started providing <a href="https://www.interactivebrokers.com/en/index.php?f=25379" target="_blank" rel="noreferrer noopener">access to cryptocurrency</a> when bitcoin futures began trading on the CME in December 2017. 



Peterffy said at the conference that customers have been asking for direct crypto trading. He added that the greatest hurdle to offering these currencies is keeping customers 100% safe and ensuring that no one steals their coins despite them being untraceable, CNBC reported.



An Interactive Brokers spokesperson did not immediately comment about the firm’s decision to provide this service to customers and how it is preparing to do so in the coming months.



The plans come as Coinbase, the largest cryptocurrency exchange in the US, is <a href="https://cms.blockworks.co/coinbase-launches-revamped-prime-brokerage-services/" target="_blank" rel="noreferrer noopener">adding new services</a> to its prime brokerage offering in response to client demand. 



Interactive Brokers competitors Fidelity and Charles Schwab do not currently offer direct access to cryptocurrency. Spokespeople for both firms did not immediately return a request for comment.



Though retail brokerage customers cannot buy or sell any cryptocurrencies at Fidelity, those who have a Coinbase digital currency account can arrange to view those balances on Fidelity’s website, the company wrote in a January blog.&nbsp;



“Although bitcoin futures are now available for trading on the CBOE and CME, Fidelity does not currently have any plans to offer bitcoin futures trading for its retail brokerage customers,” the post states.&nbsp;



Meanwhile, Schwab noted in a market commentary post published on its website in May that Schwab’s access to cryptocurrency markets can be accessed through coin trusts such as Grayscale Bitcoin Trusts, Grayscale Ethereum Trusts and Grayscale Litecoin Trust.



The Schwab post notes that aspects of cryptocurrency remain “immature” and can pose risks to clients, and that the SEC’s approval of a cryptocurrency ETF will be a key step to the market’s development.



Amid the success of <a href="https://cms.blockworks.co/will-flourishing-canadian-crypto-etfs-guide-us-sec-decision/" target="_blank" rel="noreferrer noopener">Canada’s first Bitcoin ETF</a>, Fidelity, Goldman Sachs, SkyBridge Capital, NYDIG and VanEck are among the firms that have filed for a cryptocurrency ETF in the US this year, though the products await a green light from regulators. Grayscale Investments announced its <a href="https://cms.blockworks.co/grayscale-filing-to-convert-gbtc-to-etf/" target="_blank" rel="noreferrer noopener">intentions in April to convert</a> its Grayscale Bitcoin Trust (GBTC) into an ETF when possible. 



“When there is more regulatory guidance, you can expect Schwab to have more investment options for clients, including spot crypto trading and custody,” according to the company’s website.



The price of bitcoin was above $35,000 on Wednesday morning, according to CoinGecko, after <a href="https://cms.blockworks.co/bitcoin-extends-sell-off-falls-over-10/" target="_blank" rel="noreferrer noopener">dipping below $34,000 to a two-week low on Tuesday</a>. The currency had hit an all-time high of more than $63,000 in April.