In a January 20, 2022 announcement, Robinhood revealed that the next step of its crypto wallets beta program had been launched. In the new phase, the company will roll out crypto wallets to 1000 customers.
Details Of The Rollout
After the initial rollout of crypto wallets, the company plans to expand the program to 10,000 users of its services by March 2022. In the last few months, the financial services company has expanded its effort to launch a crypto wallet.
With the new rollout, customers will be able to send and receive crypto from Robinhood’s external digital wallet. Users in the beta program will be limited to 10 transactions daily and a maximum withdrawal cap of $2,999.
In the announcement, the company stated that beta testers would help them test the core functionality of the app. Their feedback would play an important role in the rollout of the final version of the wallet. During the period of beta testing, Robinhood will roll out numerous features that will include a QR code, an upgraded transaction history interface, and a block explorer. Besides that, customers will be able to calculate the dollar amount of crypto that they send and receive.
Robinhood’s Entry Into The Crypto Market
Robinhood first announced its plans to launch a crypto wallet in September 2021. At the time, the company said that it aimed to make crypto transactions fast, secure, and simple. Soon after it launched the Alpha testing program, which concluded in December.
The number of crypto users using Robinhood’s service grew astronomically in 2021. In Q2 2021, the company saw massive growth in revenue from crypto transactions. Data from the company showed that over 50% of its transaction-based revenue came from crypto transactions.
However, the company came under fire for some quarters after it temporarily stopped Dogecoin transactions after the crypto coin saw a 900% jump in value in just hours. At the time, the company responded to criticism by stating that was in line with its obligations to the SEC.
During the initial rollout, Robinhood announced that it will remain commission-free. However, transacting on-chain comes with a network fee. Robinhood has promised that the network fee will always be displayed to customers before they initiate a transaction.
Summary
Robinhood has become popular with retail stock traders. Adding crypto traders is in line with its business model, which is geared toward retail stock traders, who often have an interest in crypto. Unlike crypto exchanges such as Coinbase, Robinhood users have the advantage of being able to trade stocks. However, unlike Coinbase, which supports around 139 coins, Robinhood traders can only trade seven coins, which are Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic, and Litecoin.
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