Robinhood will offer a crypto wallet function in the app from October, for which interested customers can put themselves on a waiting list.
According to one Blog post from Wednesday Financial services provider Robinhood is planning to start testing a wallet for its app in October, which users can use to send and receive cryptocurrencies. This could mean that more users use the app for crypto trading. It currently only allows the purchase of cryptocurrencies with US dollars and trading on the platform. Deposits and withdrawals in cryptocurrencies are not yet possible.
We are happy to announce that next month the first customers will start testing crypto wallets on Robinhood. We’ll be sharing their experiences and feedback regularly on our blog and on Twitter so you can see what we’re building and take a look under the hood
According to the announcement. Those interested in the test phase can therefore register on a waiting list. However, Robinhood did not specify which tokens exactly the new wallet will support. At the moment the app offers commission-free trading for BTC, Ether, BTC Cash, Litecoin, BTC SV, Dogecoin and ETH Classic.
Robinhood’s IPO turned out to be a huge blow
Many people remember the dogecoin hype that started on Reddit, which contributed massively to Robinhood’s popularity. Since then, Robinhood has made more options available to crypto traders. This includes, for example, a recurring investment function. It allows you to buy multiple crypto assets on a daily, weekly, bi-weekly or monthly basis.
Robinhood went public this year as its popularity grew. Controversies over the Gamestop share and the decision to suspend trading in it brought these plans to a halt for the time being. At the end of July the time had come, with the stock market debut going anything but according to plan. The criticism of Robinhood will certainly not abate with this new feature, on the contrary. The company is repeatedly accused of attracting young people who have little experience and are not yet mature enough for risky crypto trades. The special thing about the business model is that the trader himself does not charge any transaction fees; instead, the income comes from commissions.
Nonetheless, the trading volume has increased significantly in the last year. The company made $ 5 million in crypto trading services throughout 2020. In the second quarter of 2021 it was already 233 million – 41 percent of the quarterly revenue of 565 million USD.