- Tradestation plans on launching new crypto lending service.
- This service will target institutional clients, lending from clients.
- Tradestation is a US-based subsidiary of the Japan-based finance firm, Monex Group.
TradeStation, the US-based subsidiary of Monex Group, a Japanese financial firm, is making plans to launch a new crypto lending service within the country.
Crypto Earn Gearing For Launch
This plan was announced via the earning report of Monex, published on the 29th of July, 2020. This service will be dubbed “Crypto Earn,” and has been described as a “C2B2B” service. What this means is it will lend institutions assets that were, in turn, borrowed from clients.
It was back in November of last year when TradeStation launched a crypto brokerage platform. They did this through an offshoot that was newly-launched at the time, called TradeStation Crypto. The initially-supported cryptocurrencies, at launch, was Bitcoin Cash (BCH), Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH) as well as Ripple (XRP).
As it stands now, Tradestation’s crypto trading app is available within 40 US states, and was launched only this month.
Growing Interest In Crypto Lending Services
Tradestation was bought by Monex Group back in 2011, and already owns one of the largest crypto exchanges within Japan: Coincheck.
With Monex Group going into the crypto lending service, it highlights a brand new trend within traditional finance companies. As the DeFi space gains more traction, traditional finance companies, in turn, start to try their hand within the crypto lending sector. This, in turn, increases the amount of competition within lenders, as well.
Prioritizing Institutional Clients
Cointelegraph Japan did an interview with one John Bartleman back in December of 2018. Bartleman stands as the President of TradeStation, and made it clear that the offering they plan to give will be targeted at institutional-grade investors, in turn.
This, Bartleman said, will be in contrast to exchanges such as Robinhood or Coinbase, which primarily target retail investors. With this, there’s definite hope to tapping into a niche that doesn’t hold as much competition.
TradeStation made its own investments, as well, having invested within ErisX, a crypto exchange based in Chicago, back in December of 2018. With TradeStation’s collaboration, ErisX has the aim of bringing crypto investments to the traditional trading and investment world, at large.
More services entering the same space, while not really good for the company, typically does wonders for the consumers. With more companies competing with each other, it’s easier for these companies to try and outdo each other, ultimately benefiting the consumer.
