Coinswitch, a cryptocurrency-trading platform backed by Tiger Global and Andreessen Horowitz, plans to enter the stock trading market in India to challenge competitors such as Zerodha and Upstox.
What Happened? Per an insider speaking to MoneyControl, Coinswitch is preparing to apply for a stockbroker’s license from the Securities and Exchange Board of India (SEBI). Coinswitch is also negotiating with non-banking financial companies (NBFCs) and banks to offer fixed deposits.
The rationale behind this move is to cater to crypto investors exploring additional investment avenues. Amid global uncertainties around cryptocurrencies, Coinswitch had previously announced its intention to extend its services beyond crypto to traditional investment products like mutual funds and US stocks.
See also: If You Invested ₹1,000 In Bitcoin A Year Ago, Here’s How Much You’d Have Right Now
Change in plan: However, increased taxes on foreign remittances under the Liberalised Remittance Scheme (LRS) disrupted Coinswitch’s plans to offer U.S. stock investments. Hence, the company is now focusing on the Indian market.
Ashish Singhal, co-founder and CEO of Coinswitch, verified these plans to the Economic Times, stating their aim is to evolve into a comprehensive wealth tech platform with various products in the pipeline.
The entrance of Coinswitch into the stock trading market will add another player to an already crowded field, including traditional stock brokerages like ICICI Securities, HDFC Securities, Sharekhan, and new-age platforms, alongside the market leader, Zerodha.
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