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Does IBKR's Stablecoin Funding Signal Broader Product Expansion?

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Key Takeaways

  • IBKR is rolling out stablecoin funding for U.S. retail accounts, allowing deposits from crypto wallets.
  • IBKR said stablecoins are only a funding method, with balances converted to fiat for normal trading.
  • IBKR's move fits broader product expansion as it adds new markets, cards and platforms.

Continuing with its efforts to expand the product suite and reach of its services, Interactive Brokers (IBKR - Free Report) is now allowing retail investors to fund individual brokerage accounts using stablecoins. This move underscores how traditional brokers are adapting to the growing role of digital assets in mainstream finance. The feature is being rolled out gradually, beginning with a subset of eligible U.S. clients.

The addition of stablecoin funding will provide clients with an alternative to bank transfers, enabling deposits directly from cryptocurrency wallets. For traders who already operate in crypto markets, this approach can offer faster access to capital and reduced friction. However, IBKR stressed that stablecoins will be used solely as a funding mechanism rather than as an investment product. Once deposited, balances will be converted into fiat within the firm’s existing infrastructure, ensuring that trading and settlement processes for securities remain unchanged.

The rollout aligns with IBKR’s broader activity in crypto-adjacent markets, signaling that stablecoins are increasingly viewed as operational tools rather than niche instruments. Also, it adds to the brokerage firm’s other efforts that it has been taking for a long time now to expand its product offerings in order to increase scale.

Serving more than 4.1 million customer accounts and holding more than $750 billion in client equity across its global platform, IBKR has continuously been taking efforts to diversify its product offerings. The firm has also been focusing on developing proprietary software to automate broker-dealer functions, which has resulted in a steady improvement in revenues. Over the last five years (2019-2024), total net revenues witnessed a compound annual growth rate of 21.8%, with the upward momentum continuing in the first nine months of 2025.

The company’s technological superiority, combined with easier regulations to improve product velocity, will likely help its net revenues through higher client acquisitions. The Zacks Consensus Estimate for IBKR’s 2025 and 2026 revenues is $5.94 billion and $6.27 billion, which indicates year-over-year growth of 13.7% and 5.7%, respectively.

 

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Image Source: Zacks Investment Research

 

IBKR’s Efforts to Expand Product Offerings

A few days ago, the company announced that eligible clients outside of Brazil can now trade Brazilian equities through B3, the Brazil Stock Exchange, giving investors more ways to access emerging market opportunities across Latin America. Also, IBKR has announced the introduction of United Arab Emirates equities through two leading exchanges. Clients of IBKR worldwide can now access the Abu Dhabi Securities Exchange and the Dubai Financial Market.

In October 2025, IBKR launched the Karta Visa card for its clients to make purchases globally with a card linked to their IBKR account. In August, it introduced Connections, a feature designed to help investors discover trading opportunities and evaluate investments by highlighting related ideas across global markets.

A few months ago, the company launched zero-commission U.S. stock trading in Singapore and NISA accounts to help Japanese investors build wealth tax-free. After launching Forecast Contracts (those whose value is based on whether a specific event will occur at or before a particular time) for eligible clients in the United States and Hong Kong, IBKR has expanded it into Europe.

Also, it has pioneered nearly 24-hour overnight trading on U.S. stocks and ETFs, launched commission-free IBKR Lite and introduced the Impact Dashboard for sustainable investing.

Other notable launches include the IBKR Desktop platform and low-cost cryptocurrency trading through Paxos Trust Company. These initiatives are expected to strengthen Interactive Brokers’ market share amid stiff competition and help diversify operations.

Efforts Taken by IBKR’s Peers to Expand Product Offerings

IBKR’s key competitors, TradeWeb Markets Inc. (TW - Free Report) and Robinhood Markets, Inc. (HOOD - Free Report) , have also been rolling out products to bolster market share.

TradeWeb launched electronic portfolio trading for European government bonds, spanning UK Gilts, EUR and single currency notes. Also, Tradeweb was the first platform to introduce corporate bonds portfolio trading in 2019.

Likewise, Robinhood has been accelerating growth through rapid product innovation. Key launches include Cortex, an AI assistant for custom indicators, market analysis and real-time insights, and Legend.

Internationally, Robinhood is offering tokenized U.S. stocks and ETFs across 31 EU/EEA countries with 24/5 commission-free trading and aims to tokenize private companies. Expanded crypto services, a proprietary blockchain and future global banking products, along with new offices in Toronto and plans for APAC, position Robinhood as a rising global fintech ecosystem.

IBKR’s Price Performance, Valuation & Estimate Analysis

Shares of Interactive Brokers have rallied 20.8% in the past six months compared with the industry’s growth of 25.2%.

 

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Image Source: Zacks Investment Research

 

From a valuation standpoint, IBKR trades at a forward 12-month price-to-earnings (P/E) ratio of 28.28, well above the industry average of 15.10.

 

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Image Source: Zacks Investment Research

 

The Zacks Consensus Estimate for Interactive Brokers’ 2025 and 2026 earnings indicates year-over-year growth of 17.1% and 8.1%, respectively. Over the past 60 days, earnings estimates for both years have been revised upward.

 

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Image Source: Zacks Investment Research

 

Currently, Interactive Brokers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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