tl;dr
Interactive Brokers is considering launching its own stablecoin and is enabling instant, 24/7 stablecoin funding and crypto asset transfers for brokerage accounts. The company, valued at $110 billion, currently facilitates crypto trading through partnerships and investments in firms like Paxos and Z...
Interactive Brokers is exploring the possibility of launching its own stablecoin, potentially adding a major player in discount brokerage to the growing list of firms engaging with cryptocurrencies. Founder Thomas Peterffy revealed that the company is “working on potentially issuing stablecoins,” though a final decision on how and when to roll out the initiative is still pending. In the meantime, Interactive Brokers is setting up instant, round-the-clock stablecoin funding for brokerage accounts and enabling asset transfers in popular cryptocurrencies.
Valued at around $110 billion, Interactive Brokers already facilitates crypto trading through partnerships with Paxos and Zero Hash, the latter being an exchange infrastructure firm it has invested in. The company may allow customers to fund accounts using stablecoins issued by other credible financial institutions. Despite this push, Peterffy remains cautiously skeptical about cryptocurrencies, emphasizing the challenge of understanding their fundamental value while acknowledging growing customer interest.
Stablecoins, digital tokens pegged to stable assets such as the US dollar, offer a way to transfer value internationally without relying on traditional banks. This move by Interactive Brokers follows the example of competitors like Robinhood, which launched the Global Dollar Network last year featuring USDG, a dollar-pegged stablecoin issued by Paxos. This competition underscores a broader trend where major retail platforms integrate stablecoin infrastructure into core brokerage services such as deposits, withdrawals, and collateral management.
Interactive Brokers is also making strategic bets beyond traditional markets. In 2023, it introduced ForecastEx, a prediction market that lets investors buy “yes” or “no” contracts linked to specific questions, designed as a hedge against disruption in its core equities, futures, options, and crypto business lines. The firm ended June with approximately 3.87 million customer accounts, marking a 32% increase year-over-year amid persistent policy-driven market volatility. Its shares have surged about 47% this year, outperforming a sector index that climbed roughly 20%. Industry analysts view these innovative offerings as an effective shield, strengthening the company’s position amid evolving financial landscapes.