Quick take:
- Robinhood is adding NFT support to its stock trading platform.
- The leading brokerage services provider is scaling its offering amid its global expansion.
- Users will be able to hold their own crypto and NFTs in the new wallet app.
Leading retail brokerage services provider Robinhood is diving deeper into the world of crypto after launching a new wallet app that allows users to hold their cryptocurrency and non-fungible tokens (NFTs).
Robinhood is looking to expand its product offering beyond stock trading as it continues to grow globally. Robinhood shares have struggled for an upward momentum since going public with the stock now down 70%.
Its latest product puts it in direct competition with leading cryptocurrency exchange services provider Coibase, which recently pivoted to non-fungible tokens. Leading NFT wallet provider Metamask will also be a major rival to Robinhood’s new digital assets wallet.
Users will be able to store NFTs and connect to NFT marketplaces and decentralised stock exchanges. Given Robinhood’s global presence in the stock trading space, its NFT and crypto custody wallet app could become one of the most popular crypto wallets in the market.
Coinbase’s custody wallet is the most downloaded wallet in the US according to the company CEO Brian Armstrong. Therefore, Robinhood’s product could experience similar success depending on the adoption levels.
Users will also be able to earn yield through other platforms whilst also enabling access to a “variety” of crypto assets on other exchanges, the retail broker said.
The question about holding or custody of crypto assets has become a hot topic in the blockchain space, giving rise to the phrase, “not your keys, not your coins.”
The debate has intensified amid increased security breaches that have seen thieves still more than $1.2 billion so far in 2022 by exploiting private keys. As a result, NFTs and crypto enthusiasts have become more cautious about storing their assets on exchanges.
Robinhood’s commission-free trading business made it one of the most popular brokerage services over the two years, with demand for stock trading soaring during the pandemic period. However, activity has since slowed significantly with revenue for the quarter ending March 31, 2022, plunging 43% from the same quarter a year ago.
The company has focused on adding more cryptocurrency products and features in its bid to trigger recovery. Last month, it launched another crypto wallet that will remain available within the parent app.
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