Softbank backed startup to offer retail crypto trading

February 8, 2022
Crypto , Featured Stories

The stockbroking company DriveWealth was introduced to the cryptocurrency industry by launching two subsidiaries that aim to offer their cryptocurrency trading partners to retail investors. DriveWealth is a New Jersey-based company backed by Japanese technology giant Softbank with a value of $2.85 billion.

Coinbase is the largest crypto exchange based in the USA and pays up to 4.5% of the transaction amount and a distribution fee on its platform. The exchange generated 88% of the total $1.2 billion in total transaction cost revenue in the third quarter, according to the financial report for the period.

New cryptocurrency offerings are made possible by the recent acquisition of DriveWealth’s Crypto Systems, a stand-alone crypto startup. With this acquisition, DriveWealth has launched its subsidiary DriveLiquidity, which will provide liquidity to partners looking to invest and sell cryptocurrencies.

DriveWealth also launched DriveDigital as a subsidiary crypto exchange. It plans to give its partners access to an API (application programming interface) to allow investors detailed transactions in bitcoins (BTC) and Etherium (ETH).

DriveWealth CEO, Bob Cortright, was quoted saying, “As regulatory environments tighten around crypto and customers get more focused on spreads and efficiency, we can’t continue in a world where you can charge 200 basis points on a transaction.”

Coinbase (COIN) has a $39 billion market cap with an enterprise valuation of about $36.5 billion.

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