Robinhood’s Chinese rivals pivot to crypto
Two Chinese stock trading apps, competing with the popular Robinhood platform, are turning to crypto in a bid to join the international market.
Futu and Tiger brokers both have revealed that they are seeking licenses overseas to allow local investors to trade cryptocurrencies. The companies mentioned an expansion in Singapore and the United States. website, Tiger Brokers, is already present in Hong Kong and Australia.
Arthur Chen, chief financial officer of Futu, told CNBC that the company won 100,000 paid users in Singapore in the first three months of its launch in early March. He also mentioned a large influx of US-based investors in the following quarter. The two companies each have a customer base of hundreds of thousands of users.
Besides Robinhood, there are of course other competitors in space for Futu and Tiger to navigate. However, these two Chinese companies plan to get ahead of the competition by implementing social networking features built into the app. Users will be able to connect with each other, share trading tips and strategies, as well as engage with investment education materials.
However, it comes as Robinhood prepares to reveal its IPO filing. It’s one of the most anticipated IPOs of the year and follows Coinbase’s monumental public offering, which hit NASDAQ with a valuation of $ 90 billion. Tiger Brokers CEO Tianhua Wu told CNBC he was aware of the public interest in IPOs, but the enthusiasm for them had died down.
Chinese cryptography issues
The international expansion of these two Robinhood rivals follows both major swings in the crypto market and conflicting crypto news from China. One of China’s biggest stories is the intensification of the crackdown on crypto activity. Despite severe government restrictions, Chinese investors continue to engage with OTC platforms.
This follows the PRC’s order to all financial institutions located in the country to suspend all crypto services previously available to customers. Due to the decentralized nature of many operations in the crypto space, this is quite a difficult task to accomplish effectively.
Despite China’s cutting back on other crypto activities, its central bank digital currency (CBDC) is a primary focus. The Chinese digital yuan is currently involved in use case testing in various regions of the country.
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