New feature gives broker-dealers the infrastructure to allow financial advisors to trade crypto for clients
NEW YORK – June 7, 2022 – Paxos, the leading regulated blockchain infrastructure platform, announced the launch of financial advisor crypto trading within Paxos Crypto Brokerage. This functionality allows broker-dealers to provide a comprehensive wealth management solution to financial advisors so that they can seamlessly trade crypto on behalf of their clients. This new feature will help advisors and their clients overcome the barriers to accessing the fastest-growing asset class.
Recent survey data revealed that only 15% of financial advisors were allocating crypto in client accounts, but 94% of financial advisors received questions about crypto from clients. Financial advisor crypto trading from Paxos Crypto Brokerage will help broker-dealers create a seamless experience for their financial advisors and their clients to engage in the benefits of the crypto ecosystem including tax, allocation, settlement and commission functionality that also adheres to pricing requirements across other asset classes.
Financial advisor crypto trading from Paxos also enables several unique capabilities that differentiates it from other crypto infrastructure providers. This includes the ability for broker-dealers to enable registered advisors (RAs) and financial advisors (FAs) to trade or manage end user assets at their discretion including trade allocations, verify the identity of RAs or FAs to satisfy compliance requirements through independent sanctions screening, and attach an RA or FA to every transaction to create a clear record of discretion for each trade.
Through Paxos Crypto Brokerage, broker-dealers will also help registered advisors and financial advisors trade or manage end user assets at their discretion, satisfy compliance requirements through independent sanctions screenings, and create a clear record of discretion for each trade by attaching an RA or FA to every transaction.
“Crypto is growing in every sector, and we’re proud to provide this new platform that gives financial advisors access to crypto for their clients,” said Walter Hessert, Head of Strategy of Paxos. “As interest in crypto continues to grow, it’s important to recognize that technology will underscore a company or industry’s success in this space. Our goal is to provide our clients with the ability to seamlessly access crypto safely and efficiently.”
Interactive Brokers, one of the world’s largest online trading brokerages with more than $320 billion in assets under custody, has already launched access to the financial advisory crypto trading to provide crypto access to this key customer segment.
“We are pleased to offer access to cryptocurrency markets for those financial advisors who would like to make digital assets a part of their clients’ portfolios,” said Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers. “Enabling cryptocurrency trading alongside the many other asset classes available on the Interactive Brokers platform, is yet another example of our continued focus on providing financial advisors with the products and tools they need to build successful businesses.”
Paxos is the leading regulated blockchain infrastructure platform. Its products are the foundation for a new, open financial system that can operate faster and more efficiently. Today, trillions of dollars are locked in inefficient, outdated financial plumbing that is inaccessible to millions of people. Paxos is replatforming the financial system to enable assets to instantaneously move anywhere in the world, at any time, in a trustworthy way.
Paxos uses technology to tokenize, custody, trade and settle assets. It builds enterprise blockchain solutions for institutions like PayPal, Interactive Brokers, Meta, Mastercard, MercadoLibre, Bank of America, Credit Suisse, Societe Generale and Revolut. Paxos is a top-funded fintech company with more than $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures. With offices in New York, London and Singapore, Paxos takes a global approach to modernizing the financial system.