Hey, do you want to invest in crypto assets? Do you think the transaction charges are very high? Then this news regarding Softbank backed new crypto exchange in the USA is just for you.
DriveWealth has allowed its partners’ retail clients to trade crypto on its platforms. DriveWealth is a stock brokerage start-up based in the USA. By this move, DriveWealth wants to compete with Coinbase as a leading crypto exchange. It has entered the cryptocurrency market by establishing two subsidiaries. These two subsidiaries will enable its partners to provide crypto trading to individual clients. Japanese tech giant Softbank has invested in DriveWealth.
According to its CEO, Bob Cortright, the motivation of the new development was the fact that traders were forced to trade over an “unsustainable” transaction spread on Coinbase.
Currently, Coinbase is the main crypto exchange in the USA. It charges fees of up to 4.5 percent of the transaction amount plus a spread fee. According to the Coinbase financial reports, transaction fees accounted for 88 percent of its USD 1.2 billion in total income in Q3.
DriveWealth’s recent acquisition of Crypto-Systems, a distinct crypto firm, has enabled the additional crypto products. DriveWealth formed its DriveLiquidity subsidiary as a result of the purchase. It will provide liquidity for partners looking to invest in and trade crypto assets.
DriveWealth has recently formed DriveDigital also, which is a cryptocurrency exchange business. It intends to provide its partners access to allow retail investors to trade Bitcoin and Ethereum.
