Brokerage-as-a-Service innovator DriveWealth has cast a partnership with fixed-income specialist Second Expertise.
The partnership will make fixed-income extra accessible to buyers by decreasing minimal funding necessities that may be as a lot as $200,000.
New Jersey-based DriveWealth received Better of Present at FinovateEurope 2016 in London.
Brokerage-as-a-Service innovator DriveWealth has teamed up with Second Expertise to make fixed-income investing extra accessible to a broader vary of buyers. Collectively, the 2 firms search to redefine fixed-income investing, decreasing the minimal funding threshold of $200,000 on many worldwide fastened revenue merchandise.
“At DriveWealth, we’re dedicated to empowering our companions with progressive, seamless options that make investing less complicated and extra accessible,” DriveWealth CEO Michael Blaugrund mentioned. “Our partnership with Second is a serious milestone in increasing entry to fixed-income markets, enabling us to supply a consolidated API that integrates equities, bonds, and different asset courses. DriveWealth has pioneered eliminating funding boundaries from day one — like with fractional equities in 2015 — and this partnership is a pure extension of that legacy.”
Investing in fastened revenue merchandise like bonds historically has been very troublesome for retail buyers because of excessive minimal funding necessities and fragmented liquidity. Most U.S. bonds, for instance, have a $10,000 and even $100,000 minimal funding requirement, whilst most of those devices carry a $1,000 par worth. Bonds bought below Regulation S — which allows firms to boost capital from non-U.S. buyers — sometimes characteristic funding minimums of $200,000 or extra.
Given this problem, DriveWealth consolidates bond liquidity sources to make bond investing extra accessible and provides an API suite that simplifies and accelerates the onboarding course of for its companions. This allows them so as to add new bond funding capabilities rapidly and seamlessly to their providing. Together with DriveWealth’s sturdy relationships with bond sellers, liquidity suppliers, and liquidity marketplaces, Second Expertise’s platform serves as a streamlined, cost-effective resolution that permits customers to entry these sources effectively and transparently.
“Second’s platform simplifies bond liquidity entry, working collaboratively to help DriveWealth’s efforts to interrupt down conventional boundaries and assist buyers to have interaction extra simply with this beforehand underserved market,” Second Expertise CEO Dylan Parker mentioned.
New York-based Second Expertise offers fastened revenue buying and selling know-how, market knowledge, and portfolio administration to wealth platforms. Second’s companions profit from a classy Order & Execution Administration System (OEMS), Threat Administration System (RMS), Portfolio Administration System (PMS), and Information & Analytics platform. Based in 2022, the corporate consists of Andreessen Horowitz amongst its buyers; the agency led a $17 million Collection A spherical for Second again in 2023.
Based in 2012, DriveWealth received Better of Present at FinovateEurope 2016 in London. Within the years since, the New Jersey-based firm has introduced its Brokerage-as-a-Service know-how to banks, dealer sellers, asset managers, digital pockets suppliers, and shopper manufacturers all through the U.S., Latin America, EMEA, and APAC. The corporate’s platform helps buying and selling and investing in U.S. equities, exchange-traded funds (ETFs), mutual funds, choices, and glued revenue merchandise. A pioneer of fractional share investing, DriveWealth leverages its platform, APIs, and progressive pricing to supply vital flexibility for buyers no matter their internet price.
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