Bloomberg has reported that E*Trade is looking into offering support for cryptocurrency trading services via its platform. The initial phase of offering crypto will only be with Bitcoin and Ethereum, while other currencies will be looked at in the future should the exchange see a good enough return from its initial phase.
Huge breakthrough for crypto
This is seen as an impressive breakthrough by the crypto community as E*Trade is a New York-headquartered with millions of customers. It is one of the largest securities brokerages in the world and this type of support from an incumbent exchange is seen as a huge step forward for the crypto trading markets.
The company is growing impressively, having added 135 thousand new brokerage accounts on a net basis. However, it is not the kind on the block when it comes to offering both crypto and securities. Robinhood, an app that offers commission-free securities trading via its platform, has already started offering crypto to all of its users. In fact, Robinhood launched its crypto trading service in February of last year despite the market getting into a slump.
The Robinhood platform has attracted an enormous number of traders with its valuation having been boosted to almost $5.6 billion. The newcomer has received a BitLicense from the State of New York. This will allow it to expand its online trading with its own digital coin.
Others quickly entering the crypto
TD Ameritrade has started working with a crypto-only exchange called ErisX that will allow TD Ameritrade to bring spot trading services to their normal platform. These spot trading services will be for cryptocurrencies.
TD Ameritrade will boost crypto trading massively with its installed userbase being around the 11 million marks. Together with E*Trade’s 5 million users, this will bring an immense influx of new traders into the crypto trading market. It will be a game changer much like when Forex brokers first started offering retail services online.
The crypto trading space has seen a lot of entrants coming in, both startups and established exchanges. Both the NASDAQ and NYSE have been trialing products that will feature Bitcoin and Binance has started up a DEX that promises to change the face of decentralized exchanges forever.
These are exciting times for the industry and veterans are keeping their excitement under check because it is at this time that the weaker competition is eradicated. Many in the industry warn that keeping an eye on liquidity on the exchanges where they trade to make sure that they are not caught up in any closures.
All this is one step closer to bringing blockchain to a more ground-level business and particularly SMEs.