Interactive Brokers provides a new funding option for eligible clients using stablecoins, significantly enhancing speed and flexibility in accessing global markets. Announced on Thursday, this innovative system allows investors to fund their accounts almost instantaneously by sending USDC from their cryptocurrency wallets at any time, day or night. The system automatically converts the deposited assets into U.S. dollars, making them transaction-ready within a short span. This advancement signals a transformation in financial infrastructure, especially in a time when brokerage firms compete with crypto-local platforms.
24/7 Stablecoin Funding Infrastructure
The Nasdaq-listed brokerage firm offers U.S. dollar-pegged USDC transfers in collaboration with cryptocurrency infrastructure provider ZeroHash. Investors can initiate funding by securely transferring from their crypto wallets. After the transfer is confirmed within the Blockchain, the balance is automatically converted to dollars and reflected in the investment account. This process allows international investors to access stocks, options, and other markets quickly without the constraints of time zone differences and banking restrictions.
Interactive Brokers does not charge any fees on stablecoin deposits on their end. However, users are responsible for Blockchain network fees. ZeroHash applies a transaction fee of 0.30% during conversion, with a minimum limit set at 1 dollar. The announcement highlighted that the system aims to reduce costs and minimize the start time of transactions to mere minutes, particularly for cross-border investors.
Upcoming RLUSD and PYUSD Integration
At this stage, the funding option starts with USDC, but plans are in place to expand it soon. Next week, the brokerage aims to integrate RLUSD, issued by Ripple, and PYUSD, supported by PayPal. This expansion will allow users to choose from various stablecoin options.
Market data indicates that USDC is the world’s second-largest stablecoin, with a market valuation of about 75.68 billion dollars. The company’s focus on cryptocurrency-related services extends beyond just funding. A similar initiative was launched for U.S. individual customers in December. Furthermore, Interactive Brokers is listed among the investors in ZeroHash, a company known for raising 104 million dollars at a 1 billion dollar valuation.
Following the announcement, Interactive Brokers’ shares surged by over 3% on Nasdaq, reaching an all-time high of $75. This movement underscores the positive market reception toward the company’s strategic initiatives.