Global digital brokerage firm Interactive Brokers, will allow retail investors to fund their accounts with stablecoins, in a move that sees the platform blur the lines between traditional and decentralized finance, as more fintech apps adopt stablecoins.
Interactive Brokers will start unrolling direct stablecoin deposits for retail investors. The stablecoins will be deposited to individual brokerage accounts and accepted as regular transfers of value.
Interactive Brokers confirmed the addition of stablecoins in an emailed statement to Julisha Media, but did not name specific stablecoins eligible for deposits.
The brokerage platform has previously shown interest in digital assets. Earlier, Interactive Brokers also suggested it may launch a new stablecoin specifically for the needs of its platform. The brokerage may benefit from the US Genius Act, which allows an easier launch for new dollar-pegged assets.
Interactive Brokers to roll out stablecoin feature for US traders
The new feature will allow consumers to make direct transfers from self-custodial wallets, instead of connecting a bank account. Direct wallet funding will only be available for eligible account holders with completed KYC.
With the latest move, Interactive Brokers joins the growing list of fintech and investment apps that add access to stablecoins, including Robinhood and Charles Schwab Corp. The addition of stablecoins follows an earlier expansion of crypto trading access through Interactive Brokers.
Access to stablecoins will unroll gradually for US-based traders, and Interactive Brokers will share more details when the feature expands to more customers.
Currently, Interactive Brokers trades with Paxos assets, but still requires a fiat deposit to move into crypto assets. The addition of stablecoins follows the US Genius Act, which has added multiple widely available tokens to the list of regulated assets.
Interactive Brokers bridges crypto finance and stock investments
Interactive Brokers is bridging the gap in demand for investments that span both the cryptocurrency market and stocks. Some crypto holders may avoid the currently available on-chain stocks, choosing a brokerage for traditional stock trading.
At the same time, US regulators are opening pathways to tokenize more stocks and indexes, allowing traders to use their wallets directly.
The final venue of crypto and stock trading remains uncertain, although at this point, mainstream retail investors are flocking to apps like Robinhood and Revolut, which give sufficient access to crypto and offer limited wallet withdrawals for self-custody.
Interactive Brokers is also offering prediction markets, independent of the available on-chain platforms.
