Interactive Brokers Group Expands Crypto Services to Include RIAs

Key Takeaways

  • Global brokerage firm International Brokers Group has announced cryptocurrency trading and custody services for Registered Investment Advisors (RIAs) in the U.S.
  • The firm has previously rolled out direct crypto trading for its clients; the new move would enable RIAs to perform this service on clients’ behalf.
  • The services are currently only available to U.S. advisors and clients, though there are plans to expand.

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Interactive Brokers Group announced today that it would launch cryptocurrency trading and custody services for U.S. Registered Investment Advisors. The move comes roughly one month after Interactive Brokers introduced crypto trading for clients.

Interactive Brokers Group Introduces New Options for Investing in Crypto

Global brokerage firm Interactive Brokers Group announced today that it would offer cryptocurrency trading and custody services for Registered Investment Advisors in the U.S. This would allow RIAs to trade and custody certain cryptocurrencies on behalf of their clients, thus enabling them to manage their clients’ positions in cryptocurrencies in addition to those in stocks, bonds, mutual funds, and other financial instruments. 

Working through Paxos, Interactive Brokers Group will enable RIAs to trade and custody Bitcoin, Ethereum, Litecoin, and Bitcoin Cash on behalf of their clients. The news comes only a month after the firm introduced a previous partnership with Paxos, which rolled out crypto trading for U.S. clients in September. The new move would allow RIAs to manage such trades on their clients’ behalf. 

The move comes in response to growing investor demand for exposure to cryptocurrency markets. In a press release, Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, said: 

“Allocating a small percentage of assets to cryptocurrency as part of a well-diversified portfolio has steadily become more commonplace, and advisors may wish to recommend cryptocurrency to their clients…Adding cryptocurrency trading underscores our ongoing dedication to providing advisors with the investment products and tools they need to successfully manage client portfolios and grow their businesses.”

The firm’s cryptocurrency-related services are currently only available to U.S. clients and RIAs, although there are plans to launch in other parts of the world in the future. 

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Interactive Brokers Group and its affiliates provide automated trade execution and custody services for securities, commodities, and forex to individual investors, hedge funds, proprietary trading groups, and financial advisors worldwide. Paxos Trust Company is a regulated blockchain infrastructure platform that provides crypto brokerage services. It is regulated by the New York Department of Financial Services. 

Disclaimer: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.

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State Street Adds to Crypto Rush with Digital Assets Arm

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State Street is doubling down on the digital assets boom. 

State Street Adds to Crypto Rush 

State Street is launching a new unit focused on cryptocurrencies. 

The banking giant, which holds over $40 trillion in assets under custody, announced it would be opening a new division called State Street Digital in a Thursday press release

It’s set to be led by executive vice president Nadine Chakar, who will report to State Street Corporation’s chief operating officer Lou Mairui. Chakar commented on the growth of the digital assets space, asserting that the firm is well-positioned to capture a part of the market. She said: 

“State Street has a major role to play in the evolution of digital market infrastructure and this new division will help us bring our expertise and resources to the conversation. As digital currencies and tokenization not only gain momentum, but transform financial infrastructure and operating models, we can help our clients bridge the gap between the industry of today and the one of tomorrow.”

Per the press release, the bank will expand on its capabilities in crypto, blockchain, central bank digital currencies, and tokenization by evolving its GlobalLink offering into a digital multi-assets platform. 

State Street has already dipped its toes into crypto: in April, Crypto Briefing reported that the company’s trading technology provider, Currenex, would be providing crucial infrastructure to a trading platform called Pure Digital. Still, the launch of a digital assets arm is a major move that affirms the bank’s belief in the future of cryptocurrencies. 

State Street is America’s second-oldest bank, and it’s not the first institutional player to add to the crypto boom in recent months. The investment management firm follows the likes of Goldman Sachs, Morgan Stanley, and BNY Mellon to jump into crypto amid growing mainstream interest in the space.

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Crypto Venture Firm Sanctor Capital Announces Launch

Key Takeaways

  • Sanctor Capital, an investment management firm focused on the crypto space, has launched.
  • The fund will provide capital and mentoring to crypto entrepreneurs.
  • Sanctor Capital’s partners include Crypto Briefing’s founder and early team members.

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The team behind Sanctor Capital hopes to empower the next generation of crypto builders. 

Sanctor Capital Details Mission 

The blockchain and cryptocurrency industry is getting a new investment management firm. 

Sanctor Capital launched this week, detailing its plans to become “a sanctuary for the crypto founder.” In a Tuesday blog post, the fund explained its mission to accelerate growth in the crypto industry by providing investment and mentorship opportunities to early stage startups building for the future of the space. 

The firm’s partners have long been at the forefront of crypto, most notably shaping Crypto Briefing’s early years. Han Kao, a serial entrepreneur who founded Crypto Briefing in 2017, is joined by Ilya Abugov (former Head of Research) and Jay Putera (former Director of Business Development, partner) for the venture. 

In the announcement of the launch, Abugov shared the firm’s vision for the future of the industry, and how Sanctor Capital intends to play a part. He explained that crypto is now moving towards real-world utility and therefore needs a network of mentors that can help those building new products today. 

Forecasting The Future of Crypto 

The announcement also discussed how scalability, interoperability, and decentralization will “be big themes” that set the foundations of the industry for the coming years. It noted that blockchain seems to be moving towards “a multi-chain universe” and that connectivity between centralized and decentralized applications will need to improve to achieve mass adoption. 

It also projected further growth in the DeFi space, remarking that the current total value locked is “just the Proof-of-Concept stage for the sector,” and that innovations like uncollateralized lending would likely gain traction in the future. Web3 gaming in the metaverse, decentralized social media, and tokenization in the creator economy were also highlighted as some of the industry’s most disruptive innovations. 

The announcement concluded with a callout to blockchain founders: 

“ What’s important for us is that the project has missionary founders and a daring idea. We are looking for technologies that alter markets and are ready to bring the full strength of our network to support these endeavors. If this sounds like you, don’t hesitate to reach out. We are eager to help.”

Disclosure: Han Kao, Ilya Abugov, and Jay Putera founded and held management positions at Crypto Briefing. Some of them own equity in the company. 

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