One more major player is joining the movement to push crypto adoption mainstream. Online trading platform E*Trade is set to offer crypto trading services, a source revealed to Bloomberg. In doing so, the platform will join close competitor Robinhood which has received a significant push among millennial customers by offering crypto trading services.
E*Trade is an online trading platform that enables its users to trade a diverse set of financial assets. These include common stocks, preferred stocks, options, exchange-traded funds and futures contracts. It also offers online banking services as well as margin lending.
The New York-based company has been one of the companies that have revolutionized the online trading industry. This new crop of electronic platforms have given young clients a stress-free method of investing. Consequently, they have been a hit with the millennial generation.
E*Trade will first integrate Bitcoin and Ethereum, the source indicated. In the future, it will consider adding other cryptos.
By offering crypto trading, E*Trade will avail Bitcoin and Ethereum to over five million new users. This could go a long way in pushing for the mainstream adoption of cryptos. In 2018, the firm processed over 280,000 transactions on average daily. This vibrant market, which is predominantly young, could take to cryptos swiftly.
E*Trade declined to comment on the development. As such, it’s unclear if the crypto trading services will be available throughout the U.S or if it will pilot the program with a few states. Previously, some crypto trading firms have found it difficult to get a license to operate in some states.
Just recently, Bittrex was in a feud with the NYDFS. The exchange accused the regulator of bias and misrepresentation of facts. This was after the regulator denied the exchange the BitLicense, the much-coveted license to operate in New York. Kraken has also previously had a run-in with the NYDFS. At the time, Jesse Powell, Kraken’s CEO accused the regulator of acting like an ex who didn’t want them to move on.
E*Trade’s main rival Robinhood has already been there and done that. Robinhood has been offering crypto trading services for quite some time now. When the platform implemented the crypto trading service, it was behind E*Trade in user numbers. A few months later, it leapfrogged E*Trade after heavy user onboarding in the few months following the crypto announcement.
Speaking to CNBC at the time, Robinhood’s co-founder and co-CEO Baiju Bhatt highlighted just how important a role the integration of crypto had played in its aggressive growth. He stated:
Crypto has certainly added to our growth. In the next couple of years, I think you’ll see Robinhood looking like a full-service consumer finance company.
E*Trade must have taken notes and now, it’s following in the footsteps of its rival. Robinhood only offers its crypto trading services in ten states in the U.S. E*Trade could be looking at adding more states to give itself an edge over its rival.