Yahoo! Finance will be allowing users to trade cryptocurrencies within its news and trading app. The app is a resource for trading information and also a place where trades can be executed due to Yahoo’s integration with broker platforms. Litecoin, Bitcoin Cash, and Ether are among the options provided.
This comes a few months after Yahoo announced that it would be opening a large crypto exchange in Japan as more tech companies show their interest in cryptocurrencies.
Revamped App Functionality
As of this time last year, the Yahoo! Finance app has made it possible to trade directly in-app by linking to other trade brokers, thanks to a partnership with TradeIt, a company that provides a link between broker services and external sites.
TradeIt dubs itself as “the API infrastructure that links retail investors and app developers with any online financial broker.” It essentially provides the means for users of the Yahoo! Finance app to route trades through the app API to other trading platforms, providing the experience of trading within the actual Yahoo! Finance app.
App Design Choices
It is as of yet unclear as to how the app will allow trading of cryptocurrencies. It seems likely that it will connect via TradeIt to Coinbase and similar trading exchanges. However, this does not clarify who actually possesses the coins, although it will likely entail users not actually holding any cryptocurrency.
This is similar to the user model pursued by eToro, which launched crypto trading within its stock-picking platform. Although eToro allows users to make gains as crypto prices fluctuate, the user doesn’t possess any coins. The situation on Coinbase and other exchanges is somewhat similar since Coinbase holds the private keys.
The feature is already live on the Yahoo! Finance app. Normal trading fees apply. Other financial assets can be traded on the app, which functions mainly as a news aggregator and one of the main online media sources for financial and economic news.