Brokerage-as-a-Service innovator DriveWealth has solid a partnership with fixed-income specialist Second Know-how.
The partnership will make fixed-income extra accessible to buyers by lowering minimal funding necessities that may be as a lot as $200,000.
New Jersey-based DriveWealth gained Better of Present at FinovateEurope 2016 in London.
Brokerage-as-a-Service innovator DriveWealth has teamed up with Second Know-how to make fixed-income investing extra accessible to a broader vary of buyers. Collectively, the 2 corporations search to redefine fixed-income investing, lowering the minimal funding threshold of $200,000 on many worldwide mounted revenue merchandise.
“At DriveWealth, we’re dedicated to empowering our companions with revolutionary, seamless options that make investing easier 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 mounted revenue merchandise like bonds historically has been very troublesome for retail buyers as a result 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 underneath Regulation S — which permits corporations 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 affords an API suite that simplifies and accelerates the onboarding course of for its companions. This permits 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 Know-how’s platform serves as a streamlined, cost-effective resolution that allows customers to entry these assets effectively and transparently.
“Second’s platform simplifies bond liquidity entry, working collaboratively to assist DriveWealth’s efforts to interrupt down conventional boundaries and assist buyers to have interaction extra simply with this beforehand underserved market,” Second Know-how CEO Dylan Parker mentioned.
New York-based Second Know-how offers mounted revenue buying and selling expertise, market knowledge, and portfolio administration to wealth platforms. Second’s companions profit from a classy Order & Execution Administration System (OEMS), Danger Administration System (RMS), Portfolio Administration System (PMS), and Knowledge & Analytics platform. Based in 2022, the corporate contains Andreessen Horowitz amongst its buyers; the agency led a $17 million Sequence A spherical for Second again in 2023.
Based in 2012, DriveWealth gained Better of Present at FinovateEurope 2016 in London. Within the years since, the New Jersey-based firm has introduced its Brokerage-as-a-Service expertise 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 revolutionary pricing to offer important flexibility for buyers no matter their internet price.
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