Interactive Brokers (Nasdaq: IBKR) has expanded its cryptocurrency offerings to the Asian markets as it launched crypto trading services in Hong Kong. The addition of digital assets came with a growing interest among the broker’s clients.
Interactive Brokers Launches Crypto Trading in Hong Kong for Institutions
Announced on Tuesday, the offerings are limited to only two cryptocurrencies: Bitcoin and Ethereum, the top two in market capitalization. In addition, the America-headquartered broker will allow professional investors in the autonomous jurisdiction to trade the two cryptocurrencies.
To qualify to trade cryptocurrencies on Interactive Brokers, Hong Kong individual residents need to have over HKD 8 million in investable assets, while institutions should have assets of more than HKD 40 million.
“Investor demand for digital assets continues to grow in Hong Kong and around the world, and we are pleased to introduce cryptocurrency to address the trading objectives of clients in this important market,” said Interactive Brokers’ Head of APAC, David Friedland. “Eligible clients will benefit from our low costs and the ability to trade crypto alongside many other global products from a single unified platform.”
Indeed, Interactive Brokers charges a commission of 0.2 to 0.3 percent of the cryptocurrency trade volume, which will also depend on the monthly volume. However, there will be a minimum $2.25 per order charge with no added markups or margins.
Interactive Brokers tapped the services of OSL Digital Securities, a Type 1 and 7 Securities and Futures Commission (SFC)-licensed digital asset broker, for its crypto offerings in Hong Kong.
“We are excited to bring our expertise in the digital asset space to the market through these initiatives. The launch of regulated digital asset trading services marks the inception of a transformative process in the digital asset market,” said Hugh Madden, the CEO at BC Group and OSL. “We eagerly anticipate the emergence of additional market alliances that will drive growth and increase market share.”
Simplifying Cryptocurrency Trading
Demand for cryptocurrency trading among retail and institutional traders skyrocketed since the crypto prices went through the roof in the mid-2010s. However, the market became largely unregulated, and only crypto exchanges facilitated such trading.
The addition of cryptocurrency products by platforms like Interactive Brokers has eased access to cryptocurrencies. The addition of cryptocurrencies allows Interactive Brokers’ clients to trade them from a centralized cash management system that allows trading of other asset classes.
Interactive Brokers first launched cryptocurrency trading for its US customers in September 2021 with a partnership with Paxos, a company now facing regulatory troubles. The broker’s crypto offerings in the US are broader with Bitcoin, Ethereum, Litecoin, and Bitcoin Cash and are also available to retail traders.
