Robinhood, a financial services firm specializing in stock trading, exchange-traded funds, and cryptocurrency, has announced its next effort to tap into the fast-growing crypto and NFT industries.
The company plans to launch a customer-centric crypto wallet that gives users full control over their digital assets such as cryptocurrencies or NFTs, as well as the ability to connect them to existing markets.
Robinhood Goes NFTs!
Basically, the new digital wallet has similar functionality to built-in wallets like Coinbase or MetaMask, including storage, trading, and asset exchange.
The move in particular is Robinhood’s efforts to adapt to the latest transformations and rapid growth of the digitizing industry. It is also considered a twist after the previous wallet product made by the team.
Speculation about Robinhood’s virtual wallet heated up at the end of September last year. However, this wallet was not a Web3 wallet.
Previously, Robinhood users could only buy crypto with US dollars and could not trade digital assets on the Robinhood app. The team then aimed to create it to assist users in depositing and withdrawing cryptocurrencies.
More Options for Users
According to the company, the crypto wallet will include security features such as authentication, multi-factor authentication, email and phone verification to protect funds in the wallet from hackers and other threats.
The introduction was a big step forward for Robinhood in response to merchants’ requests for wallet products that support cryptocurrency deposits and withdrawals.
After months of planning, the beta launch was released in January 2022. Initially, only 1,000 customers were able to withdraw cryptocurrencies from their accounts.
Christine Brown, Managing Director of Robinhood Crypto, announced that there are 1.6 million consumers on the crypto wallet waiting list. Before releasing the final version, the business relies on beta testers to fine-tune the core functionality of the wallet.
During the Bitcoin conference in Miami, Florida in March, the business announced the launch of its new crypto wallet to over two million consumers.
Making NFTs Easy to Use
Expanding the wallet’s capacity with the arrival of NFT support is expected to be a unique selling point for Robinhood.
Vlad Tenev, co-founder and CEO of Robinhood said in a statement:
“At Robinhood, we believe that crypto is more than just an asset class…Our web3 wallet will make it easier for everyone to hold their own keys and experience all the opportunities that the open financial system has to offer.”
Robinhood does not intend to charge users any gas fees. However, it is important to note that the company will be making money from third-party brokers in order to stick to this plan.
Many experts perceive this approach as selling user information to third parties, despite the founder’s repeated denials.
The company’s Robinhood app was first made available to users on the iOS platform via the AppStore in late 2014, before officially launching in March 2015.
Robinhood Markets was the fastest growing brokerage firm. and its apps were the first financial software in history to win an Apple Design Award. Robinhood first launched Bitcoin (BTC) and Ether (ETH) trading services for customers in the US state in 2018.
Since then, the company has expanded support for altcoins and now allows merchants located anywhere outside of the four US states to access crypto features.
The number of users of the company has reached new records since the start of the pandemic and social distancing. The scope of Robinhood was expanding, and the difficult period provided them with an opportunity to grow stronger.
In online trading applications, the number of users and transactions increases the fastest.
Scandals easily followed the rapid development. The famous GameStop and WallStreetBets in 2021 is one of the most scandalous events.
The company has been criticized for its recent behavior. The community began to wonder if the company was still focusing on its initial goals or was being blinded by something more powerful.
The development of the Web3 wallet to catch the NFT wave and accelerate the crypto growth rate could be a game changer, helping the company regain its reputation.
However, with the current competition with more expertise and user confidence, Robinhood is a challenge in the game.