Commission-free stock and ETF trading app Public.com is the latest traditional investment company to offer cryptocurrency trading to its users.
The brokerage company, which attained unicorn status after a $1.2 billion valuation as announced earlier this year, stated that the custody and the execution service for its new cryptocurrency trading product will be carried out by Apex Crypto, an affiliate of Apex Clearing.
The development comes a week after a member of the company’s support team disclosed that the company is working on adding support for cryptocurrencies.
With the announcement, Public.com joins its major competitor, Robinhood, in offering crypto-related investments.
However, Public.com will need to step up its game if it wants to become one of the major fintech firms offering cryptocurrency trading in the United States, especially now that Robinhood is close to launching its cryptocurrency wallet.
Launched in 2019 under the brand name Matador, Public.com is an online broker originally focussed on traditional financial instruments like stocks and exchange-traded funds.
To date, Public.com offers 11 stocks and four ETFs that are owned by crypto-related firms, including Coinbase (COIN), Microstrategy (MSTR), Tesla (TSLA), and Square (SQ), among others.
Many believe the reason the company changed its name from Metador to Public is that it runs a social media-like type of investment where users’ portfolios can be seen by other investors on the app.
Despite running a commission-free brokerage service, investors can choose to use the company’s unique tipping feature to give out tips to the broker for executing a trade.
From traditional financial institutions offering crypto-related products to institutional involvement in cryptocurrencies, 2021 has proven to be a successful year for the industry.
These developments have contributed to the surging interest in cryptocurrencies from both retail and institutional clients, as they look to take early positions in the market given the potential of the asset classes.
Lately, banks and traditional investment companies have been left with limited options but to add crypto to their lists of services or risk losing a large percentage of their users to competitors.
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