The Zip Co Ltd (ASX: Z1P) share price has been making headlines following its solid third-quarter update and $400 million convertible notes offering. However, this subtle piece of news might have slipped through the cracks.
Zip to potentially offer stock and crypto trading
The Zip share price might be looking at another angle to drive growth outside of its core buy now pay later (BNPL) service offering.
Zip co-founder Peter Gray said that the company was looking at offering stock and cryptocurrency trading on its existing app. The roll-out of trading services would likely occur via its US QuadPay business. This move aims at further engaging its younger users who make up a majority of its customer base.
Zip could be looking to carve its own path instead of following rival Afterpay Ltd (ASX: APT) in traditional banking products. Afterpay has announced its plans to launch the Afterpay Money app in Q1 FY22. The app aims to compete as a primary money management app. It also comes complete with a linked debit card and classic banking features.
Trading is a hot space right now
The world of stock and cryptocurrency trading is on fire right now.
From a more traditional brokerage perspective, Australia’s low-cost online trading platform, SelfWealth Ltd (ASX: SWF) has been eyeing US share trading as its next avenue for growth. In the company’s recent quarterly update, its first full quarter of US trading saw 36,266 or 7% of total trades for the quarter.
The company was able to capitalise on the GameStop Corp (NYSE:GME) trading frenzy. In addition, proving itself as a reliable platform amidst platform issues and trading restrictions at competing providers.
On the smaller end of town, Doough Ltd (ASX: DOU) has also signalled its medium-term vision. This includes wealth management features in its app. In addition, it will also have wealth management and investing features.
Last night, Coinbase Global Inc (NASDAQ: COIN) officially listed on the NASDAQ. Coinbase’s initial public offering (IPO) price was set at US$250 per share, valuing the company at around US$65.3 billion.
Could this affect the Zip share price?
The prospect of launching into stock and cryptocurrency trading services is speculative at this point in time. BNPL services with a focus on its core US business and international expansion will likely be at the top of the company’s priority list.
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More reading
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Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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