Robinhood to allow users hold their own crypto and NFTs

Robinhood to allow users hold their own crypto and NFTs

Robinhood is handing over the keys to a few of its prospects’ crypto.

The buying and selling and investing firm introduced Tuesday it can let users hold and custody their own cryptocurrencies and NFTs in a separate, stand-alone app. It is the most recent transfer within the digital asset house for Robinhood because it reaches for progress past inventory buying and selling. The corporate shares are off greater than 70% since its IPO.

The brand new app will Robinhood squarely in competitors with Coinbase and start-ups like MetaMask. Coinbase CEO Brian Armstrong known as his firm’s product was probably the most downloaded, cell self-custody pockets within the U.S. in a tweet Monday.

The app will let users retailer NFTs, and join to NFT marketplaces and “decentralized” inventory exchanges. It would additionally let users earn yield by way of different platforms and entry a “variety” of crypto property on different exchanges, the corporate stated.

Who holds, or “custodies,” somebody’s cryptocurrency has change into a contentious query within the trade, fueling the viral phrase “not your keys, not your coins.” Some concern storing property on an alternate makes them extra susceptible to hacks, or censorship. 

Robinhood, which topped final 12 months’s CNBC Disruptor 50 listing, made its identify by providing commission-free inventory buying and selling. Its worth and person base soared through the pandemic because it ushered in new technology of merchants. Robinhood additionally turned the middle of the meme-stock saga after proscribing buying and selling in GameStop, the highly-shorted identify Reddit merchants purchased in defiance of Wall Road quick sellers.

The buying and selling enterprise has slowed considerably since final 12 months. For the three months ending March 31, Robinhood’s income fell 43% from a 12 months in the past. Since its public debut in August, shares have plummeted greater than 70% and are greater than 85% off of the all-time excessive. 

In an effort to spur income and person progress, Robinhood has been including extra cryptocurrency merchandise and options. In late March, Robinhood additionally added prolonged inventory buying and selling hours. Robinhood launched an earlier model crypto of wallets to prospects earlier in April, which can nonetheless be out there inside the core Robinhood app.

“We believe that crypto is more than just an asset class,” Vlad Tenev, Robinhood’s co-founder and CEO stated in a press launch. “By offering the same low cost and great design that people have come to expect from Robinhood, 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 stated the brand new pockets will roll out with a waitlist first and shall be out there internationally.

The brand new app notably will not cost community charges, regardless of Ethereum and bitcoin charges working at $70 in some circumstances. A Robinhood spokesperson stated the crypto product will depend on third-party liquidity suppliers “competing” for purchasers’ transactions behind the scenes, so as to offset these community charges.

Robinhood makes most of its income off of transaction charges in its core buying and selling enterprise, by way of a brokerage trade observe known as fee for order circulate.

— CNBC’s Jesse Pound contributed reporting.

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