Robinhood announces beta launch of crypto wallet

Rick Steves

Robinhood explained how the crypto wallet will work, with comments on the design, wallet addresses, and network/gas fees.

Robinhood has announced the upcoming beta launch of its cryptocurrency wallets a project first unveiled in September to allow customers to trade, send, and receive cryptocurrencies using the Robinhood app.

The zero commission trading platform will launch the wallets beta phase in mid-January, which will roll out to thousands of customers from the waitlist.

1 million waitlist sign ups in less than 30 days

Since September, Robinhood users have flocked to the crypto wallet waitlist, according to the trading platform, which has revealed one million customers have signed up in less than 30 days and more than 1.6 million already joined the waitlist ahead of the launch.

“We’d long heard “Wen Wallets” echo across the internet, but even we were surprised by just how excited our customers are for wallets”, the firm stated. “While we’re eager to roll-out new products as quickly as possible, building wallets and connecting our millions of customers “on-chain” (connecting with the blockchain) is a big undertaking. We take this responsibility seriously, which is why we’re rolling out wallets methodically, and with Safety First in mind.”

The Alpha program has been wrapped up after fulfilling its role of getting feedback. A tight-knit group of customers from the wallets waitlist tested the first iteration of crypto wallets and shared detailed design and functionality feedback with the team.

According to the firm, Alpha testers wanted a distinctly Robinhood experience: a customer-centric, design-first approach. They also requested signposting and explanations of terms like “network fees” and “transaction ID”. The firm will deliver and will also add education content and 24/7 phone support.

Robinhood also made comments in regard to wallet addresses and network/gas fees. “Our survey showed us that expectations differed based on experience – 66% of customers that don’t currently have a crypto wallet expect to have one address for all their transactions. This is not the case, as each network will have a different address to send & receive coins when conducting on-chain, so each coin will have its own wallet address”.

“As always, crypto trading on Robinhood will remain commission-free, but transacting on-chain typically requires a network fee, which is decided by the network and can fluctuate based on a number of factors, including the current demand for each network. Alpha testers want that information at the time of transfer in a simple and understandable way. ”

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Robinhood acquired Cove Markets to address complaints about execution

In mid-December, Robinhood announced the acquisition of Cove Markets, a cross-exchange trading platform that makes it easier for people to manage their crypto accounts. The Cove Markets team, including co-founders Scott Knudsen and Victor Glava, will join the Robinhood crypto team.

Robinhood Crypto was launched in 2018 with the mission of making crypto more accessible and easier to understand, all while continuing to offer zero-commission fees.

The Cove Markets team will help Robinhood enhance its crypto trading platform, with a focus on obtaining quality executions for customers in the crypto market.

Public.com is a stock trading platform that rivals Robinhood and is now throwing stones at the PFOF model as well as claiming it has achieved “better execution quality on average to customers” than competitors that rely on PFOF from market makers, such as the relationship between Robinhood and Citadel Securities.

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