Paxos, a blockchain infrastructure platform, launched a new service that allows financial advisor crypto trading within Paxos Crypto Brokerage.
This service allows broker-dealers to provide a wealth management solution to financial advisors to trade crypto on behalf of their clients. It will help advisors, and their clients overcome the barriers to accessing the fastest-growing asset class.
A recent survey revealed that 94 percent of financial advisors received questions about crypto from clients, but only 15 percent of financial advisors were allocating crypto in client accounts. Paxos Crypto Brokerage will help broker-dealers engage with their clients in the benefits of the crypto ecosystem, including tax, allocation, settlement, and commission functionality.
It also enables several unique capabilities that differentiate it from other crypto infrastructure providers. Including the ability for broker-dealers to enable registered advisors (RAs) and financial advisors (FAs) to trade or manage end-user assets, verify the identity of RAs or FAs to satisfy compliance requirements, and attach an RA or FA to every transaction to create a clear record of discretion for each trade.
“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,” Walter Hessert, head of strategy at Paxos, said. “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, has already launched access to the financial advisory crypto trading 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,” Steve Sanders, executive vice president of marketing and product development at Interactive Brokers, said. “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.”