Robinhood is planning to launch a non-custodial crypto wallet this year, according to the Robinhood Crypto Twitter account. Non-custodial means that users will not have access to their private keys and must trust third parties with withdrawals from the wallet.
The “robinhood wallet waitlist” is a new non-custodial crypto wallet that will be released this year by Robinhood. The app will allow users to buy, sell and trade cryptocurrencies without the need for a custodian.
Although Robinhood is most known for the GameStop fiasco in 2021, its crypto footprint has only grown stronger since the meme coin trend began in September of same year.
After introducing a crypto wallet last month and announcing the introduction of its non-custodial wallet today, the exchange is maturing and extending its offerings.
Another Crypto Wallet from Robinhood
The cryptocurrency exchange said in a press release that it is working on a new cryptocurrency wallet that will be released after the second quarter of 2022.
This wallet will be non-custodial, allowing users to be the only owners of their private keys, which are required to access their wallet and complete transactions on any blockchain.
Last month, Robinhood announced the introduction of its own bitcoin wallet.
Robinhood, as the first on the platform, announced at the time of debut that the crypto wallet will allow customers to utilize the assets they trade on the exchange for different reasons rather than selling them for money when needed.
The non-custodial wallet, on the other hand, differs from the cryptocurrency wallet in that the user is no longer reliant on Robinhood in any manner.
If Robinhood’s system went down, non-custodial wallets, for example, would be unaffected.
However, since the wallet’s private keys will be held entirely by the wallet holder, this independence exposes the user to the risk of loss. If the user loses it, they may lose all of their money.
Vlad Tenev, Robinhood’s co-founder and Chief Executive Officer (CEO), spoke more about the wallet’s introduction.
“Our web3 wallet will make it easy for everyone to hold their own keys and enjoy all the benefits that the open financial system has to offer by providing the same cheap cost and wonderful design that consumers have come to expect from Robinhood.”
Robinhood’s Cryptocurrency Focus
Robinhood has been active recently in order to push itself beyond the limits of its existing reach. In April of this year, Robinhood completed the acquisition of Ziglu, a London-based financial platform. As a result, the crypto exchange was able to establish itself in the United Kingdom.
Because Robinhood’s sales have decreased this year, these measures are crucial.
According to data from the first quarter of 2022, Robinhood’s total net revenue dropped by 43%, from $522 million in Q1 2021 to merely $299 million in Q1 2022.
Moreover, despite market rallies in mid-February and later March, the platform’s cryptocurrency income fell by 39% in the first quarter of this year, from $88 million in the first quarter of 2021, to only $54 million in the first quarter of this year.
Although the entire net loss decreased to $392 million from $1.4 billion in the first quarter of 2021, it did not help Robinhood much.
Even at the time of writing on May 18, Robinhood’s ticker HOOD has dropped 5.45 percent in 48 hours, putting its RSI in the negative, neutral zone for the last month and a half.
To counteract these drawbacks, Robinhood is doing all it can to increase the number of users and trading volume on its platform.
It also extended the trading hours for its stock market exchange by four hours to support these initiatives. Robinhood aspires to provide equities trading services around the clock, every day.
To summarize, although Robinhood is doing the proper steps by relying on the crypto market for development, it must also consider the market’s present state before relying on it.
Many investors were affected by the May 9 fall, and the subsequent bearishness may drive fresh investors away for a time.
Robinhood, the popular US-based stock trading app, is planning to launch its non-custodial crypto wallet this year. The company has been working on a new cryptocurrency wallet for over a year now. Robinhood’s CEO said that the company will start with Bitcoin and Ethereum but could add more coins in the future. Reference: will robinhood add more crypto 2021.
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