Robinhood Crypto Wallet is Coming
Shares of the financial services company Robinhood have jumped by 2.1 percent to $41.54 over the past couple of days after exciting news broke of the app unveiling a crypto wallet in the near future. This new DeFi wallet is set to enable Robinhood’s roughly 31 million users to trade and store cryptocurrencies such as Bitcoin, Ether, and others directly on Robinhood’s platform. Further, the addition of this wallet greatly simplifies users’ ability to transfer cryptocurrencies from Robinhood without having to first convert them to fiat. Previously, the platform required users to use US dollars to purchase and trade digital assets.Watch out more on Robinhood’s impressive announcement:
Robinhood chief executive Vlad Tenev had previously hinted at this move saying that it was something the company was actively working on, going on to say, “The ability to deposit and withdraw cryptocurrencies is tricky to do with scale, and we want to make sure it’s done correctly and properly”.
By putting more focus on their crypto offerings, Robinhood is further positioning themselves as a relevant competitor to Coinbase and Gemini, both of which offer crypto wallet capabilities. Robinhood recently revealed that 52% of its transaction-based revenue came from cryptocurrencies during the second quarter of 2021. When we compare that figure to the 3% of last year, it is not surprising to see Robinhood put more weight behind this budding market.
Robinhood continues to play a vital role in democratizing access to financial markets, encouraging the average person to begin investing by dropping brokerage commission fees to zero. Leveling the playing field and bringing stocks and crypto in everyone’s pocket, Robinhood has stayed true to its motto of putting “financial power into the hands of everybody”.
For more information on digital wallets and how they work, check out our comprehensive explainer.