- Robinhood Markets Inc (Nasdaq: HOOD) plans to offer cryptocurrency services for withdrawal or send and receive digital coins.
- Currently, it allows users to buy, sell, and hold cryptocurrencies like Bitcoin on its platform.
- Firms like AMC Entertainment and Adobe are also planning crypto services.
Online retail trading platform Robinhood Markets Inc may soon allow users to send and receive cryptocurrencies like Bitcoin. According to Bloomberg, the brokerage firm is currently testing a digital wallet for withdrawal services.
Users have welcomed the move and are keen to register for the wallet, which will have a special code for asset transfers. Currently, the Robinhood app does not allow transfers or withdrawals in digital assets, and users are only allowed to buy cryptocurrencies like Bitcoin using the US dollar.
But with the new digital wallet, users will be able to withdraw or transfer digital assets to other wallets. Crypto traders have been demanding apps like Robinhood to introduce the feature, so they can deposit or withdraw assets.
Many crypto communities like Dogecoin are interested in having such a wallet, Robinhood CEO Vlad Tenev said on August 19 during the earnings call when he had first revealed the plans.
Robinhood Inc, popular among young investors, had launched Bitcoin and Ethereum trading services in five US states in 2018. It currently offers services in all but four states in the US.
The cryptocurrency segment accounted for 41 percent of the company’s total revenue in Q2 of 2021. The revenue was US$565 million in the period. The share of crypto revenue for the full year 2020 was US$5 million.
Robinhood’s crypto policy
The company said it does not invest in cryptocurrency but generates income from providing trading services to users. In January this year, the company had suspended crypto trading on its app after the volatility in the market created by the GameStop frenzy. The users had then criticized the decision.
Robinhood is among many companies today that want to provide users crypto payment services for various purchases. Earlier, AMC Entertainment said it would accept movie ticket payments in Ethereum, Bitcoin, and Litecoin by 2022, according to Cointelegraph. In August, AMC said it would accept payments in Bitcoin.
Software firm Adobe also said that merchants using its Adobe Commerce product would be able to accept cryptocurrency payments via Paypal from Q4 this year.