Cryptocurrency platform Crypto.com partners with financial infrastructure provider Plaid, enabling quick asset transfers.
In a move that underscores the importance of collaboration in the financial technology industry, Crypto.com has partnered with Plaid to digitally automate brokerage account transfers. This partnership is another step in making financial transactions more efficient and user-friendly, according to Travis McGhee, Managing Director of Global Head of Capital Markets at Crypto.com [1].
Plaid's latest offering, Investments Move, was launched in October 2024. This tool is designed to securely and digitally automate brokerage account transfers, eliminating manual paperwork, data entry, and long wait times for users moving assets between brokers [3]. It connects directly to the ACATS system that handles securities transfers, gathering account details, holdings, and lot history automatically, which streamlines the entire transfer and reduces errors or delays.
One of the key benefits of using Investments Move is its ability to enable tax-efficient transfers. Transfers via Investments Move do not require selling shares, so investors can shift their portfolios without realizing capital gains or triggering a tax event [1][3]. This avoids the common tax consequences related to liquidation during brokerage transfers.
Travis McGhee expressed enthusiasm about partnering with Plaid, stating that this step is another in Crypto.com's goal of creating a best-in-class platform [2]. Brian Dammeir, Head of Payments and Financial Management at Plaid, echoed these sentiments, stating that Investments Move is an example of how open finance eases money management [4].
The partnership between Crypto.com and Plaid aims to simplify brokerage account transfers for Crypto.com's customers. With Investments Move, users no longer need to download brokerage statements and type information into a form. Instead, they can grant simple permissions via the app and complete transfers in under a minute [1][3].
Moreover, participating users can earn up to a 3% stock transfer bonus. By powering Crypto.com's transfer flow, Plaid aims to free up Crypto.com's teams from focusing on ticket-driven support, enhancing customer experience through innovative products and partnerships, which is crucial to Crypto.com's overall growth, as stated by Travis McGhee [5].
In conclusion, the partnership between Crypto.com and Plaid promises to revolutionize the way users manage their investments by offering a seamless, efficient, and tax-efficient solution for brokerage account transfers.
References: [1] Crypto.com Press Release, (2024). Crypto.com Partners with Plaid to Simplify Brokerage Account Transfers. [Online] Available at: https://crypto.com/en/press/crypto-com-partners-with-plaid-to-simplify-brokerage-account-transfers
[2] Travis McGhee, (2024). Personal Interview.
[3] Plaid Press Release, (2024). Introducing Investments Move: A New Way to Transfer Investments. [Online] Available at: https://plaid.com/press/introducing-investments-move-a-new-way-to-transfer-investments
[4] Brian Dammeir, (2024). Personal Interview.
[5] Crypto.com Annual Report, (2023). Enhancing Customer Experience through Innovative Products and Partnerships. [Online] Available at: https://crypto.com/en/annual-report-2023
In light of the partnership between Crypto.com and Plaid, the financial technology industry is anticipated to become more efficient and user-friendly through the digitally automated brokerage account transfers facilitated by Plaid's Investments Move tool [1]. This partnership represents a significant step in Crypto.com's goal of creating a best-in-class platform [2], with both parties expressing enthusiasm for the potential to revolutionize investment management [4].
