Robinhood working on crypto wallet and transfer features
Robinhood, the trading platform that is loved by the latest generation of traders and investors, has been trying out the use of crypto wallets and also transfers through them.
The idea seems to be able to facilitate the deposit and withdrawals of cryptocurrencies through the wallet without the need to convert them into USD at any point in time. It should be noted that the platform had introduced crypto trading last year and there has been a tremendous interest to trade cryptos on the platform as is evident from the increasing trading volume in the crypto segment which has helped it to boost its revenues over the past few months.
It is reported that the features have appeared in a beta version of the iPhone app of Robinhood and the introduction of the crypto wallet shouldn’t be a surprise as it is likely to naturally follow post the introduction of crypto trading in any platform. It would be interesting to see how the SEC would view this wallet and associated crypto activities as the regulator has not been kind to other crypto platforms like Binance and Coinbase over the last few months and it would be necessary for them to apply the same standards for Robinhood as well.
The company reported that 63% of its accounts have traded crypto ever since its introduction on the platform which shows the interest among the latest generation of users to trade crypto owing to its volatility. Little do they realize that such volatility poses a lot of risks also for the traders and this is something that should concern the regulators as they need to make sure that the platform is educating the traders and investors in the right manner about the risks associated with crypto trading. The platform has also reported that the number of monthly active users had risen to 21.3 million in August which is more than the 17.7 million active users at the beginning of the year.
The platform continues to grow and expand and add new features despite the increased scrutiny from the SEC and also attempts from the regulator to shut down some of its marketing and revenue-generating practices over the last few months. Its user base continues to grow despite a lot of bad press and this is likely to benefit it in the long term as it will be looking to generate some strong profits and trading volumes in the coming months to close the year in the green.