Cryptocurrency platform CoinSwitch is reportedly expanding its offerings by planning to launch a stock trading platform, entering the competitive space alongside established players like Zerodha, Groww, and Upstox. According to a source cited by ET, CoinSwitch intends to apply for a stockbroker’s license with the Securities and Exchange Board of India (SEBI) and is in talks with non-banking financial companies (NBFCs) and banks to provide fixed deposits.
The move to diversify its offerings comes as the cryptocurrency market faces challenges globally, including in India, where strict regulations and taxation have impacted crypto trading platforms. CoinSwitch aims to leverage its position as a wealthtech platform and plans to introduce a range of asset classes, including fixed deposits and mutual funds, by the end of the financial year.
CoinSwitch previously launched CoinSwitch Pro, a multi-exchange trading platform allowing users to trade crypto assets in Indian Rupees across multiple exchanges with a single login. Now, with the addition of a stock trading platform, CoinSwitch will compete in a crowded market, which includes both startup brokers and traditional brokerage firms. Established fintech players like Paytm and PhonePe also offer stock trading services on their platforms, intensifying the competition.
However, stock trading platforms have also faced challenges due to market volatility. Upstox and Zerodha, for example, have experienced a decline in active users over the past year. Despite the competitive landscape and market uncertainties, CoinSwitch is backed by prominent investors, including Coinbase Ventures and Andreessen Horowitz, and has raised approximately $300 million to date.
As CoinSwitch ventures into the stock trading arena, it aims to cater to the evolving needs of investors and position itself as a comprehensive platform for both crypto and traditional investment options. The launch of the stock trading platform will diversify CoinSwitch’s offerings, providing users with greater investment opportunities and further establishing its presence in the fintech industry.
