Robinhood's crypto wallets a game-changer for investors
(Kitco News) - Trading app Robinhood is unveiling cryptocurrency wallets in October on a trial basis in response to user demand.
The move deepens Robinhood's commitment to the cryptocurrency industry and gives users more reasons to trade Bitcoin as well as other cryptocurrencies on the app. Robinhood will begin testing cryptocurrency wallets in October. More users will be taken off a waitlist as the trial is expanded. The company's goal is to roll out crypto wallets to everybody by 2022. Robinhood's zero-commission feature will stay intact for cryptocurrency transfers. However, network fees that are inherent with blockchain transactions will still apply.
Before crypto wallets, users were limited to buy and sell crypto transactions on the Robinhood app. They couldn't transfer their crypto off the platform to another wallet for safekeeping or use it as a currency to pay for goods and services. Given the decentralized nature of the blockchain, seasoned cryptocurrency investors generally prefer to have control of their own assets, wallets, and keys rather than rely on any centralized platform.
Now Robinhood will be introducing wallets for each of the seven cryptocurrencies that it supports and will continue to do so for coins that are in the pipeline. Investors will be able to leave their crypto in the Robinhood wallet and let the exchange custody the assets for them, move it to another wallet to self-custody, or spend it.
Given the popularity of the commission-free Robinhood trading app, cryptocurrency wallets are another rung in the ladder of mainstream adoption, all of which is bullish for the Bitcoin price. Lennard Neo, head of research at Stack Funds, told Kitco,
"One thing is for sure; retail trade inflows have been supporting the markets since the May dip and we have seen the occurrence time and time again. I wouldn't be surprised if a similar picture will unfold again."
The Bitcoin price touched $50,000 in mid-May and is currently trading at about $43,000.
It's not just Bitcoin payments that are in focus. Dogecoin investors have been pressuring Robinhood on social media to expand into crypto wallets. The Doge community was among the first to celebrate Robinhood's crypto wallets as they look to catapult their favorite meme coin onto the radar of merchants and into the mainstream. Billy Markus, co-creator of Dogecoin, said on Twitter that the addition of crypto wallets on Robinhood "opens up so many users to the real utility of cryptocurrency."
One company that is in the process of integrating cryptocurrency payments is movie chain AMC Entertainment. The company already announced plans to support Bitcoin payments for tickets and concessions by year-end. Due to popular demand, AMC CEO Adam Aron revealed today that they are now working on adding support for Dogecoin payments as well.
SO FASCINATING! Dogecoin Poll was by far my highest ever read tweet. In 24 hours, 4.2 million views, my most ever retweets, most ever replies. 140,000 votes 77% yes 23% no. It’s clear that you think AMC should accept Dogecoin. Now we need to figure out how to do that. Stay tuned! pic.twitter.com/tkClzgMBMO- Adam Aron (@CEOAdam) September 22, 2021
Robinhood's expansion into crypto wallets will pit it against the likes of popular cryptocurrency exchange Coinbase. Shares of Robinhood climbed 4% on the day.