Seeking to move beyond their core stock trading business and improve on slowing results, Robinhood announced plans to release a companion app to allow for users to store personal holdings of cryptocurrency and NFTs. Kate Rooney at CNBC writes further:
“The app will let users store non-fungible tokens, and connect to NFT marketplaces and “decentralized” stock exchanges. It will also let users earn yield through other platforms and access a “variety” of crypto assets on other exchanges, Robinhood said.
Robinhood, which touts its no-commission stock trading structure, will look to offer a similar differentiation in the crypto wallet arena:
“The new app notably won’t charge network fees, despite Ethereum and bitcoin fees running at $70 in some cases. A Robinhood spokesperson said the crypto product will rely on third-party liquidity providers “competing” for customers’ transactions behind the scenes, in order to offset those network fees.”
The new wallet adds to Robinhood’s expanding strategy which has included more reach into cryptocurrency over the past year as well as extended stock trading hours. The new wallet gives users the ability to choose to purchase crypto in both custodial and non-custodial fashion.
Overview by Jordan Hirschfield, Director, Prepaid Advisory Service at Mercator Advisory Group