Interactive Brokers weighs launching customer stablecoin to power 24/7 funding

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Interactive Brokers is considering launching a stablecoin for customers, a move that would add one of the world’s largest discount brokerages to the list of firms using crypto, Reuters reported on July 28.

Founder Thomas Peterffy said in an interview with the newswire that the company is “working on potentially issuing stablecoins.” However, a final decision on the structure and rollout has not been made. 

In parallel, the broker is establishing instant, round-the-clock stablecoin funding for brokerage accounts and providing support for asset transfers in commonly traded cryptocurrencies.

Diving deeper

Interactive Brokers, valued at approximately $110 billion, already offers crypto trading through partnerships with Paxos and Zero Hash, an exchange infrastructure provider in which it is an investor. 

Among the options on the table, the firm could allow customers to fund accounts with stablecoins issued by other financial institutions, provided the issuer’s credibility is established.

Peterffy has already voiced skepticism about cryptocurrencies in the past and said he remains cautious, even as client demand grows. He added:

“It’s basically hard to grasp its fundamental value. If we see people adopting it and ascribing a value to it, I’m okay with that, but I’m still not convinced.”

Stablecoins are digital tokens designed to track the value of a stable asset, typically the US dollar, and are used to transfer value across borders without relying on traditional banking systems.

Interactive Brokers’ rival, Robinhood, unveiled the Global Dollar Network last year. The initiative is a consortium effort centered on USDG, a dollar-pegged stablecoin issued by Paxos. 

The competitive backdrop highlights how large retail platforms are racing to wrap core brokerage services, such as deposits, withdrawals, and collateral management, around stablecoin rails.

Hedging against disruption

Interactive Brokers has been pushing into adjacent bets on market structure. Last year, it launched ForecastEx, a prediction market that allows investors to buy “yes” or “no” contracts tied to specific questions, a product the firm views as a hedge against disruption to its core equities, futures, and options franchise, as well as crypto. 

The company ended June with approximately 3.87 million customer accounts, up 32% from the same period a year earlier, as trading activity remained elevated during a year of policy-driven volatility. 

Its shares have gained roughly 47% year to date, outpacing a sector index that has risen about 20%. Analysts at Morningstar recently called the predictions market and crypto offerings an “effective hedge” for the business.