An Australia-based CFD broker Pepperstone is launching a spot crypto exchange, with its CEO indicating increased competition for existing crypto-native platforms behind the move.
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Speaking at the AusCryptoCon convention, Pepperstone CEO Tamas Szabo announced the “imminent” launch, noting it was the result of a year-long investment. He also commented on current market conditions.
“I do think there’s a ‘little bit of fat on the bone’ in the exchange space, so I think there’s some competition that might come in,” Szabo stated, referring to margins in the sector.
Pepperstone’s move reflects a broader industry trend in which traditional, regulated brokers are expanding into spot crypto rather than leaving the segment to crypto-native firms.
Traditional Brokers Expand Their Presence in Spot Crypto
This trend is visible in other regions. In the United Kingdom, IG Group has been active in this direction. After initially partnering with Uphold to offer spot crypto, IG later became the first UK-listed firm to obtain its own cryptoasset license from the FCA. The licence allows the company to manage its offering and pricing more directly.
CMC Markets, meanwhile, established an office in Bermuda with a licence to conduct digital asset business, creating an offshore hub to expand its crypto services to international clients. However, CMC did not officially reveal anything on its plans to offer crypto directly yet.
These developments show traditional brokers increasing their presence in the spot crypto market. At the same time, crypto exchanges such as Kraken and Crypto.com have been seeking additional traditional licences to broaden their product suites, leading to a gradual convergence of business models.
The previously clear distinction between “CFD brokers” and “crypto exchanges” is becoming less pronounced as regulated players like Pepperstone enter the market and crypto-native firms expand into traditional product lines.
This article was written by Tanya Chepkova at www.financemagnates.com.
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