StoneX Group Launches Subsidiary StoneX Digital LLC

StoneX Group Inc. (Nasdaq: SNEX), which owns major retail FX trading brands like Forex.com and City Index, announced on Wednesday that it launched StoneX Digital LLC, a subsidiary dedicated to providing institutional clients access to products and services related to digital assets.

According to the press release, Brian Mulcahy will lead the subsidiary. He previously served as Managing Director of Multi-Asset Business Development at StoneX in 2021.

“StoneX is committed to providing our clients access to a wide array of markets, diverse asset classes, and the tools necessary to interact with those markets effectively. We are thrilled that StoneX Digital will give institutional investors the ability to execute and custody cryptocurrencies just as they would any other asset class, with a company that has the resources and a client-first approach to help them achieve their goals. As our clients’ needs change in this developing market, StoneX Digital will continue to strive to meet those needs with innovative products and services,” Mulcahy commented.

StoneX Digital enables clients to interact with markets on their terms and trade and custody cryptocurrencies on their terms. StoneX Digital’s path to growth involves a range of products and services, including multi-asset coverage, staking, margin, and cross-asset lending.

“StoneX has worked hard to create an environment where our clients have stable and reliable access to a wide variety of asset classes. We will bring that same ethos to the digital asset space as we work to provide our customers with the tools they need to thrive in today’s markets,” Mulcahy added.

StoneX Markets LLC executed and settled its first cash-settled BTC/USD swap last month. One of StoneX’s institutional FX clients, Liquidity Solutions Global, a London-based subsidiary of DriveWealth Holdings that provides liquidity to multiple cryptocurrency exchanges, was the counterparty to the transaction.

The firm’s institutional FX division also began offering USD cash-settled crypto swaps to institutional FX clients.

View Details

StoneX Taps Coinbase for Offering Nano Crypto Contracts

StoneX Financial Inc., a subsidiary of StoneX Group, has expanded its cryptocurrency offerings to clients by adding access to the full suite of Coinbase Derivatives Exchange (CDE) contracts cleared by Nodal Clear.

StoneX Enhances Retail Crypto Offerings

Announced on Thursday, the partnership between the three platforms will provide StoneX Financial clients access to CDE nano Bitcoin futures (BIT) and nano Ethereum futures (ET) contracts. The BIT is sized at 1/100th of the underlying commodity, while the ET is 1/10th.

“StoneX is committed to providing our clients with greater choice and access across financial markets to maximize their futures trading needs,” said Clayton Passero, Managing Director and Head of Futures Online, StoneX Financial Group. “This agreement enables StoneX clients to access Coinbase’s robust portfolio of products while benefiting from StoneX’s high-value and transparent clearing and execution services.”

Growing Demand in Crypto

Coinbase acquired FairX in January 2022 to enter the regulated S crypto derivatives market. The platform was rebranded to Coinbase Derivatives Exchange following the acquisition. Coinbase launched the BIT contracts on the newly acquired platform in mid-2022, targeting retail crypto traders. These nano contracts offer the same benefits as regular futures contracts but are designed for retail traders.

Nodal Clear, a Derivatives Clearing Organization, provides central counterparty clearing services to Nodal Exchange and Coinbase Derivatives Exchange. It reduced the credit risks to the market participants by becoming the buyer to every seller and the seller to every buyer.

“We are excited to have StoneX offer our futures contracts and look forward to their significant reach and distribution contributing to the quality of our already liquid futures markets,” said the CEO of CDE, Boris Ilyevsky. “StoneX’s retail customers will be able to trade accessible futures contracts tailored to their level of risk, and we plan to make larger contracts available to satisfy growing institutional demand.”

Meanwhile, StoneX is a massive financial services company with a presence in a wider market. The group, which is also the owner of Forex.com and City Index, ended the first quarter of fiscal 2023 with operating revenue of $48.8 million from forex and contracts for differences (CFDs) contracts, a decline of 32 percent.

View Details