“Natural step”: Why Stake is becoming a crypto exchange
Stake is moving into the crypto sector while warning other brokers it is time to adapt to a changing clientele.
Digital broker Stake is taking a "natural step" offering crypto assets to its clients.
In another nod to its core audience, Stake says it will start trading 50+ crypto assets by the 4th quarter of 2022.
Stake's founder and CEO Matt Leibowitz says the company is moving with the times.
"The decision to take on cryptocurrency was a natural step in offering our customers greater access to financial opportunities," he says.
A nod to younger investors
Stake has announced its move towards crypto assets due to their importance to its core audiences.
The Sydney-based fintech's claim to fame is following US trading company Robinhood and becoming the first broker to offer Aussie clients fee free US brokerage, with low minimum trading volumes.
The move helped Stake grow amongst younger traders who were previously inhibited from trading.
Stake says this latest decision is based on a commissioned study which shows Australians-under-40's second most popular form of investment was cryptocurrency. But share trading remains in first place.
"Younger Aussie investors are looking for access to a diversity of investment opportunities across established and modern asset classes, in one place," Leibowitz explains.
"They want to buy into industries and ideas changing the world near and far and not be limited by borders."
And its customers will continue to define what's next.
"They are adopting new forms of investments rapidly. Our challenge is to innovate at the pace investors are moving and not simply rest on our laurels," says Stake's crypto product manager, Jeroen Van Amerongen.
He remarks this isn't just about adding a few coins to your platform.
"It's about building a wealth management experience for the next generation. We've demonstrated that sophistication doesn't have to be complex with our US and ASX platform."
Warning others to keep up
While Stake isn't the first share trading platform in Australia to offer digital assets, the broker is warning its competitors about the importance of moving towards digital assets.
Although Stake isn't the first to move in this space.
The broker is following rivals Superhero, Selfwealth and CBA's CommSec which have all announced similar moves.
According to Leibowitz, clients' needs are changing and brokers better keep up.
"Crypto is taking the world by storm and has established itself as a legitimate asset class."
"Investors are demanding it and brokers who are dragging their feet will fall behind," Leibowitz concludes.