Robinhood Opens Crypto Wallet Service to 2 Million More Users
Even with cryptocurrency transaction-based revenue on a steady decline, Robinhood continues to expand its digital asset services
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- Bitcoin is the top recurring buy on the trading platform so far in 2022
- The wallet will not allow for the integration of Ethereum-based services or support NFTs
Stock trading platform Robinhood has opened its crypto wallet up for two million more “eligible” users, Chief Product Officer Aparna Chennapragada said during an announcement at the Bitcoin 2022 event in Miami.
The wallet, first revealed in September and beta tested for 1,000 users in January, will allow users to move cryptocurrencies in and out of Robinhood’s ecosystem. Previously, traders could only buy and sell cryptoassets within the app, and transfers off the platform were restricted.
The wallet allows Robinhood traders to gain access to the broader blockchain ecosystem but will not allow for the integration of Ethereum-based services or support NFTs (non-fungible tokens).
“Any NFTs sent to a Robinhood Ethereum address may be lost and unrecoverable,” the trading platform’s website said.
The expanded wallet services come as Robinhood customers continue to show interest in cryptocurrencies. Nearly 10 million Robinhood users traded cryptocurrencies in 2021, and bitcoin is the top recurring buy asset on the trading platform so far in 2022, Chennapragada said during the announcement.
More recent figures however show a drop off from Robhinhood’s early success with cryptocurrency trading. In the fourth quarter of 2021, the app brought in about $48 million in transaction-based revenue associated with digital assets, a decrease from the $51 million and $233 million brought in during the third and second quarters, respectively.
Robinhood executives said in January that the beta testing phase would be used to perfect the wallet, specifically in terms of finalizing the send and receive flows, adding QR functionality, improving the transaction history interface and adding block explorer support.
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