Visa crypto executive leaves for Softbank-backed start-up DriveWealth
Terry Angelos (Visa’s global head for fintech and cryptocurrency).
One of VisaCNBC learned that the company’s most senior executives are leaving for a new brokerage technology startup.
Terry Angelos is Visa’s global head in fintech, crypto and finance. He will assume the position of chief executive of DriveWealth starting next week. Angelos, who joined Visa in 2007 as part of the acquisition of TrialPay (which he co-founded and was CEO of), became a Visa executive seven years earlier.
DriveWealth offers consumer finance apps such as BlockRevolut and Cash App allow stock trading and provide necessary infrastructure behind the scenes. A broker-dealer based in Jersey City was among the first to offer fractional investing. This allows you to buy stock stocks in lower dollar amounts than buying whole shares.
Angelos stated that while retail trading was booming during the pandemics, the longer-term opportunities are in internationalizing U.S. equity. Around a billion people, outside China, have access to financial services through a digital wallet and fintech apps. They are interested in exposure to blue chip stocks.
Angelos explained that equity in U.S. corporations is “the single most stable long-term asset people want to have.” People outside of the U.S. have never been able to open a brokerage account. We believe we have the ability to solve this problem.
The Dow fell to its lowest point of the year Monday, making the U.S. less safe. Yet, the U.S. has seen an average 10% annual return over the last six decades.
DriveWealth last sold for $2.8billion and was backed by Softbank as well as Fidelity’s venture capital arm, Citi Ventures and others. As a broker-dealer licensed by the Financial Services Commission, DriveWealth provides settlement and clearing services on behalf of fintech customers. This includes apps and consumer experiences.
DriveWealth can also provide custody services for stocks and individual accounts. The API is an acronym for Application Programming Interface. It connects to these apps using software. According to the company, it has doubled its customer base over the past year and experienced a 140% increase in international partnerships. DriveWealth offers crypto investment infrastructure, as well as stocks.
Since the GameStop panic in 2021, the peak of individual investor activity has fallen significantly. Rich Repetto is a senior analyst and managing director at Piper Sandler. He said the retail participation rate as measured in retail volume as a percent of total trading volume recently dropped to its lowest point since the outbreak.
Shares of the company have suffered from this pullback RobinhoodAfter increasing its hiring efforts to meet demand, the company recently announced that it would be cutting 9% off its workforce.
Angelos stated that DriveWealth saw increased participation during recent economic downturns and that account growth has been greater. He also pointed out the long-term benefits of U.S. stock prices.
He stated that “We are still in the growth cycle to make equities accessible to people who otherwise would not have been able to access them and we will continue to witness growth even though volatility may occur among more active traders.”
Angelos indicated that a public initial offering is possible. He said that he is focusing on expanding its reach and returning as the chief executive after nearly a decade with Visa.