Interactive Brokers mulls stablecoin launch: Reuters

Interactive Brokers is considering launching a stablecoin for its customers, according to preliminary reporting from Reuters on Monday. The integration would unlock 24/7 stablecoin funding for brokerage accounts and asset transfers for commonly traded cryptocurrencies, according to the report, which cites Interactive Brokers founder Thomas Peterffy.

This would not be the brokerage giant’s first foray into the crypto industry. The firm integrated crypto trading and custody services in late 2021 with four assets, BTC, ETH, LTC, and BCH, and recently expanded support to SOL, ADA, XRP, and DOGE in March. It also has a stake in crypto exchange Zero Hash and an existing partnership with stablecoin issuer Paxos.

According to Reuters, Peterffy has not decided how the firm will launch a stablecoin. It is reportedly considering integrating stablecoins issued by other firms, depending on their credibility.

Interactive Brokers represents just the latest legacy firm looking to shake up its business model with blockchain technology. On Monday, for instance, PayPal announced it is now using its PYUSD stablecoin to support crypto payments in over 100 tokens for small businesses. A litany of banks, like JPMorgan Chase and Bank of America, have signaled interest in using blockchain rails to improve capital transfers.

Founded in 1978, Interactive Brokers is a global online brokerage firm and trading platform offering retail and institutional access to a wide range of financial instruments, including stocks, options, futures, forex, bonds, and ETFs. The firm claims its 0.12% to 0.18% trading fees — with no added spreads, markups, or custody charges — are some of the lowest in the sector compared to leading crypto exchanges and online brokers.

Notably, the first crypto-specific legislation signed into law in the United States, known as the GENIUS Act, covered stablecoins. Issuers like Tether and Circle represent some of the largest U.S. Treasury bondholders in the world.