Interactive Brokers Group Expands Crypto Services to Include RIAs

The firm has partnered once more with Paxos to facilitate trades.

Photo: madamF

Key Takeaways

  • Global brokerage firm International Brokers Group has announced cryptocurrency trading and custody services for Registered Investment Advisors (RIAs) in the U.S.
  • The firm has previously rolled out direct crypto trading for its clients; the new move would enable RIAs to perform this service on clients' behalf.
  • The services are currently only available to U.S. advisors and clients, though there are plans to expand.

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Interactive Brokers Group announced today that it would launch cryptocurrency trading and custody services for U.S. Registered Investment Advisors. The move comes roughly one month after Interactive Brokers introduced crypto trading for clients.

Interactive Brokers Group Introduces New Options for Investing in Crypto

Global brokerage firm Interactive Brokers Group announced today that it would offer cryptocurrency trading and custody services for Registered Investment Advisors in the U.S. This would allow RIAs to trade and custody certain cryptocurrencies on behalf of their clients, thus enabling them to manage their clients’ positions in cryptocurrencies in addition to those in stocks, bonds, mutual funds, and other financial instruments. 

Working through Paxos, Interactive Brokers Group will enable RIAs to trade and custody Bitcoin, Ethereum, Litecoin, and Bitcoin Cash on behalf of their clients. The news comes only a month after the firm introduced a previous partnership with Paxos, which rolled out crypto trading for U.S. clients in September. The new move would allow RIAs to manage such trades on their clients’ behalf. 

The move comes in response to growing investor demand for exposure to cryptocurrency markets. In a press release, Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, said: 

“Allocating a small percentage of assets to cryptocurrency as part of a well-diversified portfolio has steadily become more commonplace, and advisors may wish to recommend cryptocurrency to their clients…Adding cryptocurrency trading underscores our ongoing dedication to providing advisors with the investment products and tools they need to successfully manage client portfolios and grow their businesses.”

The firm’s cryptocurrency-related services are currently only available to U.S. clients and RIAs, although there are plans to launch in other parts of the world in the future. 

Interactive Brokers Group and its affiliates provide automated trade execution and custody services for securities, commodities, and forex to individual investors, hedge funds, proprietary trading groups, and financial advisors worldwide. Paxos Trust Company is a regulated blockchain infrastructure platform that provides crypto brokerage services. It is regulated by the New York Department of Financial Services. 

Disclaimer: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.

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