Sarah Tran
Independent Analyst
- Robinhood is focusing on digital currencies as it expands its crypto functions on its platform.
- While users are not able to transfer digital assets out of the account, customers have been looking to trade on crypto exchanges instead.
- The popular trading company is expected to go public later this week.
Robinhood is aiming to introduce a new cryptocurrency function that its users have been requesting – digital asset wallets.
Robinhood to introduce new features to rival crypto exchanges
Vladimir Tenev, the CEO of Robinhood, recently revealed on its roadshow that the trading platform has been working toward providing its users additional functions for its crypto customers. Tenev acknowledged that the firm’s users are demanding digital asset wallets.
While the CEO did not provide a timeline of when the new feature would be released, Tenev said that a crypto wallet is coming as soon as possible. He added that other new features are also expected in the future and that the firm is working on introducing these functionalities safely.
Currently, users of the trading platform do not have the ability to transfer cryptocurrencies out of their accounts, which has incentivized users to move to exchanges like Coinbase. Tenev added that this function may be added in the future.
Robinhood has benefited from adding cryptocurrencies to its platform, as it has become the destination for trading digital assets for millennials. In early July, the firm noted that 17% of its total revenue was earned from crypto trading, and of its digital currency revenue, 34% was attributed to Dogecoin trading.
The online brokerage firm hosted a roadshow as part of presenting information to investors for its initial public offering (IPO). As part of Robinhood’s IPO filing, a decline in Dogecoin trading interest could spell trouble for its business.
The popular trading app is looking at a valuation of $35 billion in its IPO, aiming to raise over $2 billion in its public debut. The firm’s valuation would ultimately depend on the demand for its shares.
Robinhood is set to start trading on the Nasdaq on July 29 under the ticker HOOD, according to sources familiar with the matter. The company has made itself a significant player in the crypto industry, with 9.5 million users trading cryptocurrencies in the first quarter of this year.
The firm will join the ranks of leading crypto exchange Coinbase that went public in April this year.
Despite its IPO nearing, Robinhood has faced a legal issue with New York’s regulators after the firm was expected to pay a $30 million settlement to the state’s Department of Financial Services for money laundering and cybersecurity-related issues.
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