Interactive Brokers Turns to Stablecoins To Compete With Robinhood, Schwab, Coinbase

• Tastytrade launched a similar feature earlier in the year, with both firms using ZeroHash infrastructure.
• Major brokers are building tokenization strategies, with Robinhood and Schwab increasing stablecoin use behind the scenes.
• Coinbase is seeking SEC approval to offer tokenized equities and ramping up competitive pressure on retail brokerages.

Interactive Brokers (IBKR) is reportedly moving to let customers fund their accounts with stablecoins, a shift aimed at keeping pace with competitors including Robinhood (HOOD), Charles Schwab (SCHW), and Coinbase (COIN).

The development comes five months after Tastytrade introduced a similar stablecoin funding option targeted at international traders, offering automatic USD conversion and removing the need for firms to handle custody. Both tastytrade and Interactive Brokers rely on ZeroHash for underlying infrastructure.

IBKR’s stock fell more than 4% in morning trade on Friday amid broader weakness in capital market stocks, with the Schwab Crypto Thematic ETF (STCE) down 3.3%. On Stocktwits, retail sentiment around IBKR trended in ‘bearish’ territory over the past day as chatter dipped to ‘normal’ from ‘high’ levels.

Retail Brokers Step Up Tokenization Race

The shift is unfolding as major retail brokers deepen their reliance on stablecoins internally. Robinhood uses USDG and USD Coin (USDC) behind the scenes to speed weekend settlements and improve margin efficiency. 

CEO Vlad Tenev said during last year’s fourth quarter (Q4) earnings that 24/7 functionality would eventually become standard across markets, adding that the firm is also pushing regulators for frameworks governing tokenized real-world assets and same-day settlement.

HOOD’s stock fell more than 3% in morning trade. On Stocktwits, retail sentiment around the stock, however, rose to ‘bullish’ from ‘bearish’ territory over the past day as chatter ticked higher to ‘high’ from ‘normal’ levels. 

Schwab, meanwhile, is exploring creating its own stablecoin and intends to allow spot trading for Bitcoin (BTC) and Ethereum (ETH). SCHW’s stock fell over 2% in morning trade. On Stocktwits, retail sentiment around the stock also improved to ‘bullish’ from from ‘neutral’ territory over the past day. Chatter remained at ‘normal’ levels.

CEO Rick Wurster said during the July 2025 earnings call that Schwab’s clients want to manage both crypto and traditional assets in one place. While the firm manages more than $7 trillion in assets and holds a significant share of crypto ETP flows, it has been cautious on tokenization for publicly traded equities.

Crypto Exchanges Eye U.S. Stock Trading

Coinbase is seeking SEC approval to launch blockchain-based tokenized stocks, positioning itself to compete directly with retail brokerages on lower costs. 

Chief Legal Officer Paul Grewal said in June earlier this year that the initiative is a “huge priority,” following the rollout of Kraken’s xStocks product. The company’s upcoming December 17 event may have some updates on the same. COIN’s stock slipped 1% in the morning trade. On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory over the past day with chatter at ‘normal’ levels.

According to a Bloomberg report, Interactive Broker’s new feature will be rolled out gradually, beginning with a group of eligible U.S. clients. A spokesperson for the company reportedly confirmed in an emailed statement that the update will allow users to move funds directly from cryptocurrency wallets, bypassing the need for a bank transfer. 

The report said Billionaire chairman Thomas Peterffy first flagged the initiative during Goldman Sachs Group’s financial-services conference on Wednesday. It added that additional details on stablecoin account funding will be released as the rollout expands to more users.

Read also: Tether Moves To Stop Shareholder Exodus As Company Aims for OpenAI, SpaceX-Level Valuation: Report

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