Interactive Brokers Launches USDC Deposit Service

Interactive Brokers, a major US brokerage firm, launched a direct deposit service for USD Coin (USDC) to brokerage accounts on January 15th. Clients can transfer USDC from their cryptocurrency wallets without a bank transfer and have the funds reflected in their accounts within minutes.

This new service operates 24/7, with instant processing even on weekends and holidays, allowing clients to add funds and begin trading at times previously unavailable with traditional bank transfers. The service also emphasizes that fees are significantly lower than international transfers, allowing clients to immediately begin trading on approximately 170 global markets.

How the USDC Deposit Service Works and Benefits

With this newly introduced USDC deposit service, the transferred stablecoin (USDC) is automatically converted to US dollars and deposited into a brokerage account. Interactive Brokers does not charge any fees for this deposit; instead, its conversion partner, Zero Hash, charges a conversion fee of 0.30% of the deposit amount (with a minimum fee of $1). While blockchain-based remittance fees are borne by the customer, they are still faster and cheaper than international bank transfers.

This new funding channel, which operates 24/7, will significantly alleviate geographic and time constraints. Traditionally, international fund transfers have required multiple bank transfers and are dependent on business days and hours. However, deposits using stablecoins are completed almost instantly thanks to a constantly operating settlement infrastructure.

Costs are reduced by eliminating the need for intermediary banks or clearing houses, and the transfer status can be tracked transparently on the blockchain. These features will be a major advantage for regional investors who have struggled with the cost and time required for USD-denominated remittances, as well as traders who want to deploy funds flexibly, even on weekends.

Having initially supported USDC, support is scheduled to be expanded to include Ripple's stablecoin (RLUSD) and PayPal's coin (PYUSD) next week. Increasing the number of supported currencies will enable users to transfer funds more flexibly depending on the type of stablecoin they hold.