164726513 - 1_1px8mozn - PID 1851201
    
    
      
    
  

  
    
        >> Our mission since the
founding
        of TradeStation has been
        to provide our customers
        with an individual
financial edge.
        By doing that, we started
as
        a software Fintech company
in
        the mid-80s and through
the '90s,
        providing really high-end
analytics,
        that really institutional
quality,
        bringing that to the
retail customer.
        We've continued that when
we became
        a broker-dealer in 2001,
        provided access to
multiple markets,
        starting with equities and
options,
        then adding on futures.
        Ultimately becoming
        a self-clearing broker
dealer,
        and providing an
end-to-end experience for
        our retail customer and
        been trained by the
professional.
        We combined our software,
        analytics and the broker's
        capabilities all in one.
        Our software can provide
you with
        the analytics to give you
comfort that
        you understand what's
going on in
        the market and the
patterns that are
        happening and how it's
        historically reacted to
those patterns.
        That now carries on to
        the crypto space where we
feel we can provide
        that same level of quality
and
        innovation into an
evolving space.
        >> We're a boutique
brokerage firm.
        We're not the everything
for everybody firm.
        We are here when you want
to trade and you
        want to focus on really
mixing
        up in the trading or
investing side.
        That's who we are. That's
in our DNA.
        Being on the front line at
TradeStation,
        we sit in this traditional
asset
        like one foot in
traditional markets,
        one-foot in crypto
markets,
        and we get to watch how
they merge together.
        We're really a thorn in
the side
        of many of the big-box
brokers,
        because they're not
currently
        offering a really ready to
        offer cryptocurrencies.
        TradeStation has been able
to
        really capitalize on that
advantage and
        draw folks that are
        interested in investing in
        crypto firm and other
big-box broker firms.
        >> Crypto is an
interesting asset class.
        What we've seen in the
standard assets
        of equities and options in
the futures,
        it really started with
institutional players
        first and then the retail
market followed.
        With crypto, it really
went the other way,
        and it started with
retail.
        People that really had no
idea about
        the standard markets or
the market structure,
        getting involved in
cryptocurrencies.
        It was really
revolutionary.
        It's taken on a grassroots
effort
        from the bottom up of
        these people who were
really worried about
        the government spending
        and what happened after
        the financial collapse in
2008.
        We emerge with this really
        amazing core technology
        that's now finding a
purpose.
        We launched our crypto
business in late 2019.
        We're still in that crypto
winter.
        It wasn't really until
about August of 2020
        into COVID when we really
started
        seeing massive activity in
Bitcoin.
        You've already started
seeing the run-up
        of cryptocurrencies at
that point.
        Then coming into December
of last year,
        you really saw a race up
in
        the market through the end
        of December and into
January.
        During that period what we
        saw explosive growth is
        accompanying both in new
customers coming
        in and the transactions
going to our system.
        >> So TS crypto stands
apart, really,
        it folds under that
        established and trusted
        brand of TradeStation,
        so that's one great
umbrella that you get,
        which is 38 plus years of
Fintech innovation.
        As an overall crypto
offering,
        we're not an exchange.
        We never really wanted to
be an exchange.
        We are leaning into that
role as a broker.
        What that allows us to do
is to
        connect to multiple pools
of liquidity,
        aggregate those prices
into
        a consolidated bid and
offer,
        and allow you to execute
into a pool of
        liquidity as opposed to
        a single isolated
exchange.
        >> In introducing crypto,
        we saw an opportunity,
one,
        to provide our existing
customers with
        an access to a new market
        with the cryptocurrencies.
        On the other side, we
actually saw
        a new market segment that
wasn't exposed to
        stocks that we felt we
could bring into
        the regular market by
offering
        them a crossover product.
        When we looked at the
space at
        the time when we're going
live,
        you've had all of these
crypto
        exchanges that called
themselves exchanges,
        but they're really brokers
        with single pools of the
liquidity.
        If you're a customer
        trying to get into crypto,
        you would have to go and
fund
        each separate account
across
        the different crypto
exchanges
        to find the best price,
        yet, move your money
around, so really
        a difficult user
experience.
        We brought this more
        from a brokerage
experience.
        We want to have a
        recognizable brand name
with
        the standard market
capabilities
        and we're adding crypto
into that experience.
        Hoping to be able to
create
        more approachable crypto,
        offering them what was out
        in the market at the time.
        >> If somebody's getting
serious
        about trading and trading
crypto,
        then TradeStation crypto
is a
        natural evolution for
them.
        If Bitcoin is Janet's day,
        you try the bitcoin.
        If tomorrow is Tesla, you
can
        [inaudible] switchover
        and start trading Tesla,
        TradeStation securities or
        any other asset classes
they offer.
        It's a great gateway
        into other markets with
sophisticated tools.
        >> From here, we really
think that
        things will start to
explode.
        Start getting much more
interest,
        we'll get much more
clarity on
        the regulatory front as
        far as how we need to
operate,
        what kind of controls
        and processes we need to
put in
        place to really provide
        comfort and protection for
the end customer.
        But at this point, it's
emerged beyond
        just a small asset class,
        it is now emerging to
        a mainstream offering for
customers.
        We really see our ability
        to be a frontrunner in
        that with the brand of
        TradeStation to be able
        to carry that forward.
        Some of the questions
        that customers are going
to
        ask are the safety of
funds.
        If I'm putting my money
into crypto,
        I've heard about all these
hacks.
        Is cryptocurrency
hackable?
        Is TradeStation secure?
        We've put in place
        a very robust
cybersecurity
        in cold and warm storage
solution.
        We believe the state of
the art
        and capable of protecting
        our customer's funds,
        but it is a risk factor
        that's different than the
standard markets.
        >> You hear all these
headlines
        about Bitcoin as bad,
        it's used for money
laundering,
        it's going to get stolen.
        All of these horrible
things
        in the news headlines,
        which makes for phenomenal
news headlines.
        That was one of the big
challenges we
        saw and we wanted to solve
was
        that there's not a great
spot
        to go where you have a
reliable,
        familiar, and even trusted
        group to interact with.
        A lot of what we focus on
is,
        how do I make holding
        Bitcoin as easy it
        is to hold Apple and
Tesla?
        That's really what we
        think is needed in the
space.
        We try to make it as
familiar as possible,
        so you can just focus on
trade,
        not have to worry
        about what does this lever
do?
        What does this doll do?
        It's all the things you
would expect
        from TradeStation made
        available on the crypto
products.
        >> We've originally
thought this was
        a fad and may not be
        accepted by governments,
        but I think crypto is
        here to stay Blockchain.
        I think everyone
universally agrees
        it's a technology that's
here to stay,
        in what form, which
        cryptocurrencies are going
to survive?
        There's a lot of questions
around that.
        I think Bitcoin has gotten
        the brand reputation
        of the gold replacement or
gold alternative,
        but matured to a place
where we feel
        very confident that
        cryptocurrency is here to
stay.
        This is a real
        legitimate asset class to
be investing.
        Crypto-earn is really
unique in this space.
        One of the few crypto
players who
        provides interests
        income on your crypto
holdings.
        Just by investing in
crypto and
        having your TradeStation,
        you're earning interest.
        >> More and more,
        you're finding that there
are not
        great opportunities
        for you to earn interests,
        whether that's in your
savings
        account, in your CDs.
        The interest rates are
        ultralow all around the
world.
        People want to be able to
        earn extra income on top
of their assets.
        >> We are now able to
        build out the entire
lending network of
        counterparties in
technology that
        allows us to scale
        and provide our customers
with
        an interest income on
their crypto holdings.
        If you're holding Bitcoin
        with us, for example,
        we'll pay you
        a quarter percent interest
rate on that,
        which accrues daily and
pays out fluently.
        This is a significant
advancement
        over what you can do out
of a regular bank.
        The first question we get
is,
        how can you do that?
        I don't understand.
        There's got to be a catch.
        It's really explaining to
the customer
        the lending market behind
the cryptocurrency.
        Just like a bank, they're
providing
        you an interest rate
because they're lending
        your assets that are
sitting in
        the bank to borrowers,
        whether it's mortgage or
business loan,
        that's how they're
        funding the interest
rates.
        It's the same thing with
cryptocurrency.
        We have an entire lending
market
        of customers in
        counterparties who would
want to borrow
        this cryptocurrencies at
very
        high rates today.
        We're able to then turn
around and provide
        that high rate of return
to our customers.
        >> That's a great feature
for customers
        that are long bitcoin, for
example,
        and just want to get some
additional return
        or if they're sitting on
        a whole bunch of cash,
        they can park it in a
stable coin and it's
        a great opportunity to
        increase the yield on your
portfolio.
        Also the thing that we're
probably most
        proud of is the learn
aspect of this.
        Whether you are an
experienced investor
        or you're a newbie,
        we have a good program
that helps you to
        understand what this
market is all about.
        Really take you from zero
to
        understanding what you're
actually
        touching and investing in.
        That part is really where
we think
        is our big value is give
you
        those powerful tools that
allow you to
        learn along the way so
        you can take advantage of
those tools.
        Today, the exchanges are
the broker,
        the exchange are
custodian, they do it all.
        We just focus on being the
broker and
        we are trying to do that
        as best as we possibly
can,
        so that is our job
        to really focus on the
customer,
        give them the best
connectivity we can,
        the best tools we can and
        protect and secure the
assets as best we can.
        It's been a long time
coming
        for us to get here today.
        We're really positioned
well to
        help the access to
        this market as as this
huge wave of
        enthusiasm has taken root
around the world.
        >> We've been in the
market
        for over 35 years.
        We've got a brand and a
reputation as
        an innovative dynamic
software platform
        in trading brokerage
capabilities
        for active traders.
        We see that really
crossing over
        very well into the crypto
space.
        We can leverage that brand
and
        reputation to really grow
and get
        people comfortable
entering a space
        as new and innovative as
crypto is.
        >> Are we going anywhere?
Unlikely.