Robinhood Markets will launch a non-custodial crypto wallet by the end of this year to store and trade crypto.
The announcement comes a month after the brokerage launched a custodial crypto wallet that can trade any token 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.
Having a private key means that customers are safe from Robinhood failures, but there is a risk of losing their funds if they lose their private key.
Robinhood Wallet will be easy 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 of non-fungible tokens[एनएफटी]markets and decentralized financial[डीएफआई]Can connect to platforms and access assets on other exchanges.
“We believe that crypto is more than just an asset class,” said Robinhood chief executive Vlad Tenev. “By offering the same low cost and great design that people have come to expect from Robinhood, our Web3 Wallet will make it easy for everyone to keep their keys and experience all the opportunities the open financial system offers.”
The new wallet will be available internationally without network charges. Robinhood will rely on third-party liquidity providers for customer transactions to offset the cost of network fees.
With many individuals turning to online trading during the pandemic, Robinhood’s platform has seen significant growth. However, it recently announced it was laying off 9% of its workforce, which became bloated and complicated during the pandemic.
Robinhood has a market value of approximately $9 billion, with cash and holdings equivalent to $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 stock drop of 70% since its initial public offering. Its competitors include Coinbase Wallet and MetaMask.