Stock Groups

Robinhood to begin testing crypto wallets, with broader launch in early 2022 By Reuters


© Reuters. FILE PHOTO. The Robinhood Markets, Inc. logo is displayed at a Wall Street event after its IPO, New York City, U.S.A, July 29, 2021. REUTERS/Andrew Kelly/File Photo

By John McCrank

NEW YORK (Reuters) – Robinhood Markets Inc (NASDAQ:) said on Wednesday it plans to begin testing cryptocurrency wallets next month, with a broader rollout in early 2022, allowing its users to move supported digital currencies in and out of their brokerage accounts.

Menlo Park-based brokerage permits the purchase, sale, and holding of certain crypto currencies, including bitcoin and dogecoin. The retail brokerage also allows for equities transactions to be made.

Customers of Robinhood, which benefited from a boom in retail trading during the pandemic, have long asked for crypto wallets, which would allow them to participate more broadly in blockchain-based ecosystems, such as buying virtual assets like non-fungible tokens (NTFs) on the network.

Aparna Chennapragada (chief product officer at Robinhood) said that this is “the natural next step when we think of democratizing financial services for all” and would allow more people to participate in the emerging markets.

Chennapragada explained that they plan to conduct a survey of its crypto-trading users (which make up about 60% of the app’s 21.3million active users) and select a small number of respondents to start testing new wallets and providing feedback.

She said that Robinhood customers will be able to join a waiting list in order to gain future access. This is part of the gradual rollout.

Company said that the wallets would include security features, such as email verification, phone verification, identity verification, and multi-factor authentication to protect coins against hacks.

Chennapragada stated that one of their main goals was to ensure the wallet is safe and secure.

Robinhood stated that it will maintain 0% commissions on crypto trades after the wallets launch. 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges. They are provided by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.