The popular trading app Robinhood plans to introduce a digital wallet for crypto assets. A waitlist to test the new feature has now been opened.
We heard you.
— Robinhood (@RobinhoodApp) September 22, 2021
Crypto wallets are coming to Robinhood
Already, Robinhood allows users to invest in and trade various crypto assets, such as BTC, ETH, BCH, BSV, LTC, DOGE, and ETC. However, users can only trade make trades within their account, using fiat money for deposits and withdrawals.
In a blog post published yesterday, the trading app confirmed that they will be testing a digital wallet feature starting next month to enable users to deposit and withdraw crypto assets. Recently, the app also released a feature for recurring investments that allow users to invest small sums of money in crypto on a regular basis.
Intransparent business practices remain problematic
Although Robinhood is one of the most popular apps for retail traders, it has been involved in various scandals and was fined multiple times. The app has been widely criticized for its use of payment for order flow instead of charging trading fees.
Most notably, Robinhood has played a major role in the GameStop short squeeze in January 2021. During the peak of the event, Robinhood halted trading on GameStop, as well as other stocks, only allowing users to close their positions. As reasons for this move, the app cited liquidity problems with their clearinghouse.
While Robinhood is typically not seen as a primary exchange for cryptocurrencies by the established blockchain community, the release of a digital wallet feature could give access to cryptocurrencies for users who have no previous involvement in this asset class.