Robinhood Markets Inc, the fourth largest fintech in the US, is testing a new crypto wallet with transfer functionality via its app.
Robinhood crypto wallet
Earlier this year, Robinhood had discussed the possibility of adding crypto wallets, but the company was also cautious explaining that it wanted to do it the right way and by leveraging the right technologies to ensure security and transparency for customers.
The crypto wallet, currently in beta for iOS users, will make it easier to store, send and receive supported digital currencies that are protected by a private key, such as Bitcoin, Ethereum or Dogecoin. Having integrated cryptocurrency wallets on Robinhood allows users to use cryptocurrencies without having to convert them into fiat.
Robinhood’s supported cryptocurrencies
There are a total of 7 crypto assets currently supported with no fixed fees but only a fee that varies depending on the transaction. Robinhood may also offer users the possibility to enable two-factor authentication for this new offer.
It is already possible for Robinhood customers to buy and sell cryptocurrencies such as Bitcoin, but the new features would allow them to manage all their crypto in a single digital wallet on the app.
Robinhood users are currently only able to buy cryptocurrencies with US dollars and trade digital assets on the platform, as the app does not yet support deposits and withdrawals.
Crypto trading on Robinhood
On Monday, the fintech company’s official Twitter page published a post with a gif of John Travolta looking around from inside a wallet and with a caption where they asked their community:
“What is one product feature you would love to see and why wallets?”.
The post was later retweeted by Robinhood CEO and co-founder Vlad Tenev, who had previously indicated that it was a priority for the company’s developers to implement a crypto wallet both to cater to more enthusiastic customers and to refine the financial services offered.
Digital currency trading on Robinhood reached record levels in the second quarter of 2021, accounting for more than half of all revenues calculated on transactions. The company said that around 52% of its revenues came from cryptocurrencies, up from 3% last year.
In particular, Dogecoin accounted for 62% of total crypto trading volume in the period under review.
Following the news, Robinhood’s shares rose 3.91% to $42.29 on the NASDAQ stock market.