Robinhood Markets will launch a non-custodial crypto wallet by the end of this year to store and trade crypto.
This announcement comes a little over a month after the brokerage launched a custodial crypto wallet that can hold any tokens traded on their app.
The new non-custodial wallet will allow users to hold private keys that enable them to transact on the blockchain instead of surrendering them to Robinhood.
Holding private keys means that customers are protected from Robinhood failing but risk losing their funds if they misplace their private key.
Robinhood wallet will be simple to use
The new wallet will have its own app that Robinhood hopes will “feature the same simple and accessible design.” The company said that users would be able to connect to non-fungible token (NFT) marketplaces, and decentralized finance (DeFi) platforms, and access assets on other exchanges.
“We believe that crypto is more than just an asset class,” said Vlad Tenev, Robinhood’s chief executive. “By offering the same low cost and great design that people have come to expect from Robinhood, our Web3 wallet will make it easier for everyone to hold their own keys and experience all the opportunities that the open financial system has to offer.”
The new wallet will be available internationally without network fees. Robinhood will rely on third-party liquidity providers vying for customer transactions to offset the cost of network fees.
Robinhood’s platform saw significant growth as many individuals turned to online trading during the pandemic. However, it recently announced that it is laying off 9% of its workforce, which had become bloated and complex during the pandemic.
Robinhood has a market value of around $9 billion with cash and equivalent holdings of $6 billion.
Last week, FTX CEO Sam Bankman-Fried announced the purchase of a 7.6% stake in Robinhood making him the third-largest shareholder in the company.
Robinhood’s wallet announcement comes amid a drop in stock of 70% since its initial public offering. its competitors include Coinbase Wallet and MetaMask.
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