American payments giant PayPal is reportedly exploring ways to offer stock trading after launching cryptocurrency trading services last year. PayPal is looking to buy or partner with a broker-dealer to introduce its own stock trading service to compete with rivals such as crypto-friendly stock trading app Robinhood, CNBC reported on Monday.
Citing anonymous sources, the report notes that PayPal has conducted relevant discussions with potential industry players but is unlikely to launch the new investment service this year. According to CNBC, PayPal’s potential approval as a brokerage firm by the Financial Industry Regulatory Authority could take more than eight months.
As part of the alleged plan, PayPal has already hired brokerage industry veteran Rich Hagen as the new CEO for its previously undisclosed division known as “Invest at PayPal.” According to Hagen’s LinkedIn page, the executive will be responsible for PayPal’s “efforts to explore opportunities in the consumer investment business.”
Hagen is a co-founder and former president of Ally Invest, a regulated brokerage business that acquired online brokerage firm TradeKing in 2016. The new PayPal executive was also the president of TradeKing, which he co-founded back in 2005.
Retail shareholders of crypto-friendly trading app Robinhood are demanding a crypto wallet along with a branded hat and hoodie, a public shareholders questionnaire revealed.
The public question crowdsourcing platform Say, which was Robinhood’s first purchase after it went public, enabled retail shareholders of Robinhood to ask and upvote questions in a Reddit-style interface. “Management will address a selection of the most upvoted questions relating to Robinhood’s business and financial results on the earnings call,” Say explained.
The top question directed to the Robinhood management by retail shareholders as of Wednesday was about introducing a crypto wallet within the trading app. The question, “Is Robinhood getting a crypto wallet?” was shared more than 141,500 times and received over 1,600 votes.
Robinhood currently lists a bunch of popular cryptocurrencies, such as Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), Litecoin (LTC), Ethereum Classic (ETC), Bitcoin Cash (BCH) and Bitcoin SV (BSV) for trade on its platform.
While the users can buy, sell and hold listed cryptocurrencies within the app, they cannot access the coins themselves to transfer them to other wallets due to the lack of a crypto wallet feature. The company announced plans to offer crypto deposits and withdrawals way before its initial public offering, but the feature is yet to be introduced.
FTX.US, the United States-based affiliate of Sam Bankman-Fried’s cryptocurrency exchange FTX, is acquiring crypto derivatives platform LedgerX for an undisclosed amount.
FTX.US’ owner, West Realm Shire Services, announced on Tuesday that the company had executed a sale-and-purchase agreement to acquire LedgerX’s parent company, Ledger Holdings. The deal is expected to close, pending satisfaction of customary closing conditions, the firm noted.
LedgerX is a digital currency futures and options exchange regulated under the Commodity Futures Trading Commission, Swap Execution Facility and Derivatives Clearing Organization. The platform is available for retail and institutional investors, allowing them to trade cryptocurrency futures with the physical settlement of all contracts.
According to the announcement, the acquisition will have no material impact on LedgerX’s operations as the platform will continue to provide its current services to its existing customer base. The deal will reportedly provide FTX.US with the ability to offer options and futures contracts on Bitcoin (BTC) and Ether (ETH) to institutional and retail investors, significantly expanding its spot trading services.
This Daily Dose was brought to you by Cointelegraph.