Brokerage-as-a-Service innovator DriveWealth has cast 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 received 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 earnings 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 significant milestone in increasing entry to fixed-income markets, enabling us to supply a consolidated API that integrates equities, bonds, and different asset lessons. DriveWealth has pioneered eliminating funding limitations from day one — like with fractional equities in 2015 — and this partnership is a pure extension of that legacy.”
Investing in mounted earnings merchandise like bonds historically has been very tough for retail buyers on account 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, at the same time as most of those devices carry a $1,000 par worth. Bonds offered beneath 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 presents an API suite that simplifies and accelerates the onboarding course of for its companions. This allows them so as to add new bond funding capabilities shortly and seamlessly to their providing. Together with DriveWealth’s robust relationships with bond sellers, liquidity suppliers, and liquidity marketplaces, Second Know-how’s platform serves as a streamlined, cost-effective resolution that permits customers to entry these sources effectively and transparently.
“Second’s platform simplifies bond liquidity entry, working collaboratively to help DriveWealth’s efforts to interrupt down conventional limitations 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 supplies mounted earnings buying and selling know-how, market knowledge, and portfolio administration to wealth platforms. Second’s companions profit from a complicated 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 Collection A spherical for Second again in 2023.
Based in 2012, DriveWealth received Better of Present at FinovateEurope 2016 in London. Within the years since, the New Jersey-based firm has introduced its Brokerage-as-a-Service know-how 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 stuck earnings merchandise. A pioneer of fractional share investing, DriveWealth leverages its platform, APIs, and revolutionary pricing to offer important flexibility for buyers no matter their web value.
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