Most people know the name E*Trade, considering the substantial number of commercials that feature how easy it is to use their trading desk. In order to expand the company’s reach to other investors as well, the company will soon be making crypto trading available as well, according to details revealed to Bloomberg. Let’s recap just how bullish of news this could result in Etrade offering up crypto asset trading services in the near future.
The company also plans to join forces with Robinhood, which happens to be a close competitor.
The platform for E*Trade allows users to trade in a variety of different assets, like common stocks, preferred stocks, options, ETFs, and futures contracts. In addition to these products, along with margin lending, the company also provides banking services.
In the world of online trading, eTrade has definitely been a revolutionary influence, as other trading platforms have opened as well. Younger people in the crypto and traditional trading industries have been able to get more involved without much stress at all, which has made these types of platforms a major hit amongst millennials.
When E*Trade launches the new platform, they plan to first add Bitcoin and Ethereum. However, the Bloomberg source said that there could be other cryptocurrencies added later on, though there were no details on which one. Still, by opening the door to just these two tokens, they will be exposing the cryptocurrencies to over five million new users, which is important for the potential of mass adoption.
So far, even though a representative has spoken on the matter, E*Trade has not issued any official statement on this development. That being said, it’s not clear if the new services will be available at a widespread capacity across the whole country, or if it will only be trialed in a few states first. There might be kickback from some states, as not all local jurisdictions have the same rules regarding cryptocurrency.
New York is one of the stricter states, and their Department of Financial Services recently decided to sue the Bittrex exchange. Bittrex was denied a BitLicense, resulting in accusations that the regulator is biased. The Kraken exchange also ran into troubles with New York’s DFS, as CEO Jesse Powell of Kraken stated that the regulator simply didn’t want to move on.
Robinhood, E-TRADE’s former competitor and new partner, has been through these experiences before, and have already been involved with crypto trading for an extensive amount of time. Co-founder and CEO of Robinhood, spoke to CNBC recently to discuss how necessary crypto has been in its growth, adding that they hope to be “a full-service consumer finance company.”
Now, it looks like E*Trade is following in the same path, and the collaboration could ultimately push the industry to new depths.
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