Robinhood, the popular trading platform among the younger generation of traders and investors, has been experimenting with the use of cryptocurrency wallets and cryptocurrency transfers.
The concept appears to be capable of facilitating cryptocurrency deposits and withdrawals through the wallet without the requirement to convert them into USD at any point in time.It should be mentioned that the platform introduced crypto trading last year, and there has been a lot of interest in trading cryptos on the platform, as evidenced by the rising trading volume in the crypto segment, which has helped it increase its revenue in recent months.
The capabilities have reportedly emerged in a test version of Robinhood’s iPhone app, and the addition of a crypto wallet shouldn’t come as a surprise, as it is expected to automatically follow the introduction of crypto trading on any platform. It will be fascinating to observe how the SEC views this wallet and associated crypto operations, as the agency has not been nice to other crypto platforms such as Binance and Coinbase in recent months, and it will be important for them to apply the same criteria to Robinhood.
According to the company, 63 percent of its accounts have traded crypto since it was introduced on the platform, indicating that the latest generation of customers are interested in trading crypto due to its volatility. Little do they realise that such volatility poses a significant risk to traders, and this is something that authorities should be concerned about, as they must ensure that the platform is properly educating traders and investors about the risks connected with crypto trading. The site also revealed that the number of monthly active users increased to 21.3 million in August, up from 17.7 million at the start of the year.
Despite heightened SEC attention and attempts by the regulator to shut down parts of the platform’s marketing and revenue-generating tactics in recent months, the site continues to grow, expand, and add new services. Despite a lot of bad news, its user base continues to grow, which is likely to benefit it in the long run as it looks to generate some high earnings and trading volumes in the coming months in order to end the year in the black.