Digital exchange Uphold announced on Tuesday the launch of commission-free trading services for cryptocurrencies.
With the new business model, the San Francisco-headquartered company is directly taking on platforms like Robinhood and Revolut. It is also boasting added features to the traders that are still to be seen in its competition.
“Unlike our competitors, we’re staying true to the fundamental premise of cryptocurrencies: financial self-sovereignty,” explained J.P. Thieriot, CEO of Uphold. “At Uphold, you can move your crypto into private wallets at will; send funds to virtually anyone, anywhere, instantly and free of charge; as well as use your holdings as a medium of exchange for payments. None of which you can do at Robinhood or Revolut.”
Disrupting digital trading
Zero-commission trading was popularized by Robinhood in the US with is stock-based services; however, the platform also jumped into crypto with the growing demand in the market. The new model disrupted the businesses of established traders, which forced firms like Charles Schwab and TD Ameritrade to introduce similar services.
Though there is still a stark difference between the volume of established platforms and zero-fee services, the potential of client shift cannot be ignored.
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“In practical terms, there’s now no easier or more cost-effective way for retail investors to trade cryptocurrencies and other assets,” Thieriot said. “No other platform gives customers such choice, freedom, and value for money.”
In addition to zero-commission trading, the platform also scrapped the fiat deposit fees for the clients using their credit and debit cards to fund their accounts.
“The convenience of being able to withdraw your funds immediately to a bank-issued debit card is going to be a huge attraction for customers,” Thieriot added.
Founded in 2014 as Bitreserve, Uphold received a $57.5 million investment from former Greg Kidd, Ripple’s chief risk officer, in January 2018.
Last month, the platform also tied with Salt to offer crypto lending services to its users.