Vlad Tenev, CEO and co-founder of Robinhood Markets, Inc., will appear on the screen on July 29, 2021 during his company’s IPO at the Nasdaq Market site in Times Square, New York City, USA.
Brendan MacDermid | Reuters
Robin Hood is passing the key to some of the customer’s cryptography.
Trade and investment companies announced on Tuesday that they will be able to retain and manage their own cryptocurrencies and NFTs in a separate standalone app. This is Robin Hood’s latest move in the digital asset space to grow beyond equity trading. The company’s stock has been off by more than 70% since the IPO.
The new app will be Robin Hood, which will compete head-on with start-ups like Coinbase and MetaMask. Brian Armstrong, CEO of Coinbase, said his company’s product is the most downloaded mobile self-custodian wallet in the United States. In a tweet on Monday..
This app allows users to save NFTs and connect to NFT marketplaces and “decentralized” stock exchanges. The company also said that users will be able to earn yields through other platforms and access “various” crypto assets on other exchanges.
Who holds or “manages” someone’s cryptocurrency has become a controversial question in the industry, fueling the viral phrase “not your key, not your coin.” increase. Some people fear that storing assets on exchanges makes them more vulnerable to hacking and censorship.
Robin Hood, which surpassed last year’s CNBC Disruptor 50 list, named it by offering commission-free stock trading. Its value and user base skyrocketed as it led a new generation of traders during the pandemic. Robin Hood also became the centerpiece of the meme stock story after restricting trading on GameStop, a very short-named Reddit trader who bought ignoring Wall Street shortsellers.
The trading business has slowed significantly since last year. For the three months leading up to March 31, Robin Hood’s revenues were down 43% from a year ago. Since its release in August, stock prices have plummeted by more than 70%, down more than 85%, a record high.
Robin Hood is adding more crypto products and features to drive revenue and user growth. In late March, Robin Hood also added an extension of stock trading hours. Robin Hood released a previous version of the wallet cryptocurrency to its customers in early April. It will continue to be available within the core Robin Hood app.
“We believe that cryptocurrencies are more than just an asset class,” Robinhood co-founder and CEO Vladimir Tenev said in a press release. “By offering the same low cost and good design that people expect from Robin Hood, our web3 wallet allows everyone to have their own keys and experience all the opportunities offered by an open financial system. Make it easier to do. “
Robin Hood said the new wallet will first be rolled out on a waiting list and will be available internationally.
Ethereum and Bitcoin may cost $ 70, but the new app doesn’t charge any network fees. A spokesperson for Robin Hood said cryptocurrency products rely on third-party liquidity providers to “compete” customer transactions behind the scenes to offset these network charges.
Robin Hood accounts for the majority of its revenue from transaction fees in its core trading business through a securities industry practice called order flow payments.
— CNBC’s Jesse Pound contributed to the report.