Robinhood doubles down on cryptocurrency with new wallet offering
By Weston Blasi
Over half of Robinhood's transaction-based revenue came from cryptocurrency trading last quarter
Robinhood Markets Inc. (HOOD) is rolling out a new feature that will allow users to use a crypto wallet and make cryptocurrency transfers on its app, the company confirmed to MarketWatch.
Crypto wallets are digital storage areas where people can safely keep digital coins. Digital coins that trade on Robinhood, including bitcoin , ethereum and dogecoin , will be able to be stored in the crypto wallets, according to Robinhood.
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While it's already possible for Robinhood users to buy and sell cryptocurrency, this would be the first time account holders can manage all of their crypto holdings through a wallet inside the app. Other companies including Coinbase Global Inc. (COIN) and Gemini Trust Co. offer crypto wallets.
"Robinhood crypto wallets will allow you to move your crypto in and out of your app in a few taps," the company announced. "Send your crypto to other wallet addresses and receive supported cryptocurrencies into your Robinhood account."
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Robinhood's crypto wallets will debut in October for some users and will be available to 100% of account holders in early 2022, a company representative told MarketWatch.
The announcement comes a few days after Robinhood began allowing users to set up recurring buys for cryptocurrencies.
Prior to this announcement, Robinhood users were only allowed to set up automated buys for stocks and ETFs, not cryptocurrency.
More than half of Robinhood's $565 million transaction-based revenue came from cryptocurrency trading during the last quarter. Last week, Robinhood warned any user thinking about buying cryptocurrencies that "crypto markets can be volatile."
Robinhood's stock, which debuted in late July on Nasdaq, was up 2.86% during Wednesday trading.
(END) Dow Jones Newswires
September 24, 2021 11:13 ET (15:13 GMT)
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