The large trading platform Robinhood Markets (HOOD) just started testing a beta version of its long awaited crypto wallet, allowing 1,000 selected users to send a receive assets from external wallets. The connection to the blockchain marks a milestone for the company.
Robinhood’s stock has been free falling, and the cryptocurrency market make up for a large part of the company’s revenue. The wallet’s success is a very important step for their growth since it might bring in many new users.
A Long Awaited Crypto Wallet
Robinhood announced that the next phase of their cryptocurrency Wallets program, starting by rolling them out to 1,000 selected customers from a large waitlist of 1.6 million users who have been waiting for the feature.
“This is the second major milestone in our Wallets rollout, which will enable Robinhood customers to send and receive their cryptocurrency from Robinhood to external cryptocurrency wallets, and fully connect Robinhood crypto holders to the greater blockchain ecosystem for the very first time.”
This is an important feature for Robinhood’s investors, since it solves the unavailability of transferring out their crypto holdings. Up until now, digital coins like Bitcoin, Ethereum, and Dogecoin, could not be withdrawn nor stored privately in the platform.
Robinhood’s Cryptocurrency COO Christine Brown tweeted following the launch:
“Over the duration of the Beta program, we will be working to finalize the send and receive flows and add delightful QR scanning experiences, improved transaction history, and block explorer support so you can see your transactions on-chain— and more!”
The company further explained that the beta testers will help their “test core functionality and provide critical feedback to inform the final version of the product.”
Robinhood said they will be allowing users to calculate the dollar value of the digital coin they wish to send or receive. Furthermore, the testers “will have a daily limit of $2999 in total withdrawals and 10 transactions, and will need to enable two-factor authentication.”
Bitcoinist reported earlier that the company claimed to be working on providing a correct and proper feature since “The ability to deposit and withdraw cryptocurrencies is tricky to do with scale.”
Dogecoin Supports Robinhood
Robinhood used to be best known for stocks and options broking, but in 2021’s second quarter cryptocurrency-related activity made up for 51% of its revenue. The popular meme-coin Dogecoin (DOGE) carried 40% of the company’s cryptocurrency transaction-based revenue.
Robinhood’s stock has been free falling 78% down –to $14 per share– from its all time high. However, the digital coins holdings have kept on increasing in the platform significantly faster than traditional stock assets.
Many traders favor DOGE and they have long asked for a wallet so their trading is not limited. This allows a many possibilities of interaction with the blockchain ecosystems.
“Connecting millions of Robinhood customers to the blockchain ecosystem in a safe, accessible setting is a massive undertaking. We take this responsibility seriously, which is why we’re rolling out wallets methodically, consistent with our “Safety First” value.”