Robinhood, a trading app, recently announced a crypto wallet where users can store their tokens. The company did not specify which tokens the digital wallet would support.
According to a blog post published on Wednesday, Robinhood intends to begin testing a digital wallet feature on its app in October, which will allow users to send and receive cryptocurrencies.
The move may encourage more Robinhood users to use the app for crypto trading, as the app currently only allows users to buy crypto with US dollars and trade on the platform — they cannot deposit or withdraw in crypto.
The digital wallet will not support any specific tokens, but it currently offers commission-free trading for Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Bitcoin SV (BSV), Dogecoin (DOGE), and Ethereum Classic (ETC).
The wallets will have security features such as identity verification, multi-factor authentication, and email and phone verification, according to the company, “to keep coins safe from hacks and other threats.”
The trading app saw a surge in popularity earlier this year, owing to retail investors from Reddit buying DOGE to try to drive up the price.
Since then, Robinhood has expanded its crypto trading options, including the addition of a recurring investment feature that allows users to buy multiple crypto assets on a daily, weekly, bi-weekly, or monthly basis.
Three years ago, Robinhood launched crypto trading, and trading volume has increased significantly in the last year.
In total, the company made $5 million in cryptocurrency trading services in 2020, but $233 million in the second quarter of 2021, accounting for 41% of its $565 million quarterly revenue.
