Robinhood Plans to Start Testing a Crypto Wallet Feature
Trading app Robinhood debuted crypto trading in 2018. Even after several years, Robinhood continues to offer more and more interesting features. Recently, it opened up a waitlist to test a crypto wallet for users to hold their tokens.
Robinhood decided to start testing a crypto wallet feature on its app that enables users to send and receive cryptocurrencies in October. Its decision may encourage more users to use the app for crypto trading. As of September 2021, customers can only buy crypto with U.S. dollars and trade on the platform. They can not deposit or withdraw crypto.
It didn’t specify which tokens the digital wallet would support. The app currently provides commission-free trading for Bitcoin, Ether, Bitcoin Cash, Litecoin. It also provides commission-free trading for Bitcoin SV, Dogecoin, as well as Ethereum Classic.
The company stated that it planned for the crypto wallets to have security features, including identity verification, multi-factor authentication, etc. Security features will keep coins safe from hacks and other threats.
Robinhood and its history
Robinhood gained popularity in 2021, likely due to retail investors from Reddit purchasing DOGE in an attempt to pump up the price. Since that time, it made more options available to crypto traders, including a recurring investment feature. The feature mentioned above allows customers to purchase numerous crypto assets on a daily, bi-weekly, or monthly basis.
In 2020, the company generated $5 million in crypto trading services. Robinhood made even more money this year. It generated $233 million from crypto trading services in the second quarter of 2021.
Robinhood’s monthly active users more than doubled year-over-year (YoY) from 10.2 million to 21.3 million. In spite of the surging crypto revenue, Robinhood reported an overall loss of $464 million for the second quarter of the year. But losses are attributed to the accounting adjustments pertaining to the fluctuating warrants and notes held by Robinhood.