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Softbank Supported DriveWealth Launches 2 Subsidiaries to Enter Crypto Hub


Working as a top-tier stock brokerage firm supported by Japanese tech conglomerate Softbank, DriveWealth is all set to mark its entry into the billion-dollar crypto industry. To support its diverse vision, the company has announced the launch of two subsidiary concerns that will help the partner firms to provide crypto trading services to retail investors. The fast-growing decentralized asset market has encouraged renowned multinational firms from across the world to show active participation in the sector through product diversification and work expansion.

According to the report, the shift in the crypto cluster was primarily influenced by the traders who are compelled to trade across an unsustainable transaction spread on the Coinbase exchange. The exchange recently acquired a crypto startup named Crypto-Systems to support its crypto expedition. This helped the stockbroker to launch its DriveLiquidity subsidiary that offers liquidity aid to partners planning to invest or trade in the crypto sector. The firm also launched Drive Digital as a subsidiary crypto exchange portal. The unit will provide Application Programming Interface or API access to the partner projects so that they can help retail investors in making trades on BTC and ETH.

The remarks came from DriveWealth CEO Bob Cortright who shared views with CNBC on the firm’s crypto exploration. The spearhead added that it is not healthy for customers to continue trading in a space where one can charge 200 basis points per transaction especially when the regulatory authorities are strengthening the controls around the crypto industry and users. He stated that global e-commerce firms have found that a significant percentage of their clients are interested in owning crypto tokens. The chief elaborated that companies are requesting access to liquidity pools related to crypto for providing their users an opportunity to trade and earn in crypto.

Interestingly, the largest U.S-based crypto exchange platform, Coinbase charges a whopping fee from investors that go as high as 4.5% of the transaction value along with a spread fee. In its Q3 report, it was revealed that the exchange fetched 88% of its total revenue worth of $1.2B in the form of transaction fees from customers. The exchange has more than 68 million investors as of Q3 data while its native token COIN has a $38B worth market cap and an enterprise value of about $36.5B. The platform is known for offering a safe and transparent crypto trading experience to investors from across the globe.