Uphold, a prominent crypto trading platform, has received approval from the U.S. FINRA (Financial Industry Regulatory Authority) to acquire broker-dealer JNK Securities. Established in 1993, JNK Securities is an execution-only trading firm with uninterrupted market access to the listed and OTC markets. Uphold becomes the first firm to own a broker-dealer that can offer equities to retail traders on an omnibus basis. For the uninformed, an omnibus account enables a broker to manage trades for more than one person in an account after the trades are carried out in the broker’s name.
Moreover, via acquisition, JNK clients will have access to crypto to fiat trading pairs with a degree of anonymity. Additionally, Uphold also elucidates that it intends to grow its equity offering in 2021 from 50 U.S. stocks to 3,500 stocks and options. Outside of the U.S., Uphold has been the only platform in the world allowing fractional U.S. equities trading on a 24/7 basis.
The prominent crypto trading platform, Uphold, also contends that the acquisition aims to allow the platform to introduce fractional equities in the U.S. later this year in addition to offering an interface for users to trade between crypto, stocks, carbon credits, precious metals, and other assets. Uphold further unveiled the acquisition will present it with an efficient vehicle to market its prosperous cryptocurrency investment fund, Digital Asset Alpha, to hedge funds to JNK Securities’ widespread client base. Digital Asset Alpha germinates non-directional bets on cryptocurrencies apprehending arbitrage and yield opportunities in derivatives and DeFi.
InnReg Managed Uphold’s Regulatory Approval Process
Uphold also revealed that InnReg, a compliance consulting firm concentrating on supporting innovative fintech companies, conducted Uphold’s regulatory approval process. InnReg opines that regulatory approval for a broker-dealer acquisition by a firm like Uphold is a rare occurrence. Moreover, approval is essential in advancing progress towards a unified trading experience across asset classes.
Uphold is a digital platform serving over 5 million consumers in about 150 nations. Uphold now controls more than $1.5 billion in consumer assets. Uphold recently initiates approximately 10,000 accounts a day as customers attempt a more versatile and cost-effective home for their financial lives. It offers both consumers and businesses easy access to 27 national currencies, 46 digital assets, four precious metals, and 50 fractional U.S. equities via blockchain technology.