DriveWealth pushes into crypto trading

Embedded finance company DriveWealth on Monday said it would roll out a crypto trading offering to its partners and their retail investors.

DriveWealth offers infrastructure that allows other fintechs such as Revolut, MoneyLion and Block’s Cash App to support fractional stock trading. It says it has more than 100 partners globally. 

The move comes through the launch of two subsidiaries, DriveLiquidity and DriveDigital which will handle and execute trades, and follows the completed acquisition of Crypto-Systems.

“Creating DriveWealth’s crypto vertical strengthens our ability to empower retail investors to enter these markets, while also equipping our partners with the end-to-end technology they need to power the investing experience as we move into the virtual asset space,” Bob C0rtright, founder and CEO of DriveWealth said in a press statement. 

In comments to CNBC, Cortright added that the move would take on Coinbase’s “unsustainable” fees.

“As regulatory environments tighten around crypto and customers get more focused on spreads and efficiency, we can’t continue in a world where you can charge 200 basis points on a transaction,” he said. 

The moves follow DriveWealth’s $450m Series D funding round, which saw its valuation top $2.85 billion. The round was led by Insight Partners and Accel, with participation from Softbank Vision Fund alongside Greyhound Capital and Point72 Ventures.