Main Points:
- Interactive Brokers (IBKR), a leading discount brokerage with a market capitalization of $110 billion, is exploring issuing its own stablecoin to enable 24/7 funding and seamless asset transfers for clients.
- IBKR already supports crypto trading via a partnership with Paxos and investment in Zero Hash, and has expanded from Bitcoin and Ether (Dec 2021) to Solana, Cardano, XRP, and Dogecoin (March 2025).
- The U.S. GENIUS Act, signed on July 18, 2025, establishes a clear regulatory framework for stablecoins, paving the way for more bank-backed digital money and corporate treasury solutions.
- Other firms—like Robinhood through the USDG stablecoin and a Global Dollar Network consortium—have already entered the space, signaling growing institutional interest.
- Global stablecoin circulation has reached $250 billion, doubling over the past year, though it still represents under 1 percent of global money flows.
- Potential benefits include reduced funding friction, enhanced cross-border payments, and diversified product offerings, but risks around reserve transparency, regulatory compliance, and monetary sovereignty remain.
Background: IBKR’s Crypto Journey
Interactive Brokers, valued at roughly $110 billion, launched cryptocurrency trading for clients in late 2021 with Bitcoin and Ether, later expanding support in March 2025 to include Solana, Cardano, XRP, and Dogecoin. The firm currently manages approximately 3.87 million customer accounts—a 32 percent year‑on‑year increase—and its stock has surged 47 percent so far in 2025, outperforming industry peers. These milestones reflect IBKR’s strategic push into digital assets and alternative markets.
Figure 1: Cumulative Crypto Assets Supported by Interactive Brokers Over Time
Proposed Stablecoin Service
Thomas Peterffy, IBKR’s founder, revealed that the firm is “considering” issuing a proprietary stablecoin that would allow clients to fund brokerage accounts around-the-clock and facilitate asset transfers between major cryptocurrencies and traditional securities. Depending on issuer credibility, IBKR may also allow third-party stablecoins in customer accounts. While Peterffy noted the “intrinsic value” concerns of cryptocurrencies, he acknowledged that broader adoption could signal market validation.
Regulatory Landscape: The GENIUS Act
On July 18, 2025, President Donald Trump signed the GENIUS Act into law, creating specific regulations for U.S. dollar‑pegged stablecoins. The act mandates:
- Full backing by liquid assets such as U.S. dollars and Treasury bills
- Monthly public disclosure of reserve holdings
- Oversight by a federal regulator to ensure consumer protection and financial stability
Dante Disparte, Chief Strategy Officer at Circle, commented that the law “unlocks broader adoption by traditional institutions” and “brings much‑needed trust and transparency to the sector.” This clearer legal framework is expected to drive incumbent financial firms deeper into the stablecoin space.
Industry Trends Among Financial Institutions
Traditional brokerage and banking giants are increasingly eyeing stablecoins:
- Robinhood launched its USDG stablecoin via a consortium including Kraken, Galaxy Digital, and Paxos in November 2024 under the Global Dollar Network initiative.
- Bank of America, Stripe, and PayPal have published research on tokenized cash and explored pilot programs to speed cross‑border payments.
- ECB officials warn that dominant U.S. dollar‑pegged stablecoins (e.g., Tether, Circle) could undermine euro‑area monetary sovereignty, propelling Europe’s digital euro project. Global stablecoin circulation hit $250 billion, but euro‑denominated tokens account for under €350 million.
These moves underscore a broader shift: as regulatory clarity emerges, traditional financial players are poised to integrate blockchain‑based payments and treasury solutions into their core offerings.
Potential Benefits and Risks
Benefits:
- Liquidity and Speed: 24/7 settlement without traditional banking hours improves funding flexibility.
- Cross‑Asset Transfers: Native stablecoin wallets can simplify moving assets between crypto and securities.
- Revenue Diversification: Transaction fees on stablecoin issuance, redemption, and transfers create new income streams.
Risks:
- Reserve Transparency: Ensuring every issued token is fully backed by liquid assets remains a trust issue.
- Regulatory Compliance: Firms must navigate evolving KYC/AML requirements and disclosure mandates.
- Monetary Sovereignty: Widespread adoption of privately issued stablecoins may dilute central banks’ control over money supply, a concern highlighted by the ECB.
Market Impact and IBKR’s Strategic Position
Interactive Brokers’ entry into stablecoin issuance could:
- Attract crypto‑native clients seeking seamless funding and trading experiences.
- Enhance IBKR’s product suite, complementing its existing prediction‑market platform ForecastEx.
- Signal to investors that IBKR is leveraging regulatory tailwinds to diversify beyond traditional margin and commission‑based revenues.
Given IBKR’s existing partnerships with Paxos for cryptocurrency custody and trading via Zero Hash, stablecoin issuance is a logical extension, positioning the firm alongside peers and fintech innovators embracing blockchain rails for financial services.
Conclusion
Interactive Brokers’ consideration of a proprietary stablecoin exemplifies the intersection of regulatory evolution, institutional interest, and technological innovation. With the GENIUS Act providing a clear legislative backdrop, and major fintech and banking players already piloting or launching stablecoins, IBKR’s move could redefine brokerage‑to‑blockchain integration. Success will hinge on robust reserve management, regulatory compliance, and delivering tangible client benefits in speed and convenience. As stablecoins’ total circulation nears $250 billion, the next wave of digital finance will be shaped by how effectively established institutions like IBKR harness blockchain for practical, secure, and compliant financial services.
