Voyager Digital To Allow Use Of USDC To Buy Stocks

February 15, 2022 8:20 pm

Voyager Digital is a crypto based company that has recently announced plans to let its customers buy stocks directly by using the popular USDC stable coin.

This new feature is made possible by the company’s collaboration with Market Rebellion which would give the two business the ability to operate as a regular broker for stocks and other traditional financial assets.’

The company decided to pursue this as part of their roadmap due to the increasing popularity of cryptocurrencies and the advantages that stable coins provide over fiat currencies for exchange.

Coinspeaker reports:

Voyager’s new move signifies how crypto platforms make an effort to expand their business. Also, these exchanges seek to diversify their sources of revenue.

More importantly, no company wants to lose its customers to competitors. Hence crypto exchanges integrate more features to offer more services to their consumers.

Crypto derivatives exchange FTX.US and Bitstamp USA is currently considering equities trading. However, the companies are yet to announce any intentions to allow Stablecoins in the transactions. 

Voyager CEO and founder Steve Ehrlich commented on accepting USDC for stocks. He said:

“Incorporating stock trading, especially basing it on digital dollars, is a natural extension of what we’re doing, of our value proposition and what consumers are going to want in the near future.”

In addition to accepting USDC, Voyager also plans to offer commission-free equity trades to users. According to the CEO, this will be available in the second half of the year.

Ehrlich also said that the company would be careful to comply with all Financial Industry Regulatory Authority guidelines.

With this new focus on using a stable coin like USDC for its platform, this may help inspire other mainstream platforms to utilize stable coins as well.

Currently, USDC is the second most popular stable coin that is ranked 5th on CoinMarketCap and has a total market capitalization of $52 billion.

If USDC continues to be the preferred choice, there may be a chance that USDC eventually over takes Tether’s top spot as the most used stable coin.

Besides that, Voyager is also focusing on creating a new debit card that will allow customers to directly use their USDC balances just as easy as a regular credit card.

As the technology develops, companies like Voyager are able to bring customers all the benefits of using stable coins like USDC, but with the current convenience of credit cards.

PYMNTS reports:

That partnership follows Voyager’s collaboration with Mastercard in November 2021 which introduced a debit that offers high returns on stablecoin assets.

“This will bring to our consumers — and future customers — a debit card that is tied to their USDC balances held at Voyager,” Ehrlich told PYMNTS last year.

“Cardholders can earn their annual rewards that are paid monthly by holding USDC with us, but then use that debit card anywhere that Mastercard is accepted.

You can spend just as you would if you were using a card from a traditional bank.”

 

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