In April 2022, Robinhood rolled out its first crypto wallet to about two million people, making it easier for them to spend their crypto using the platform. Now, just a month later, the company has announced that they’re building a second wallet. This brand new non-custodial, Web3 wallet will give users “total control” over their crypto.
“Our Web3 wallet will make it easier for everyone to hold their own keys and experience all the opportunities that the open financial system has to offer,” Robinhood CEO Vlad Tenev said in a press release.
According to the Robinhood blog, the non-custodial wallet will launch as a standalone app. Users can trade and swap crypto with no network fees and store NFTs and connect to marketplaces. Further, the wallet will serve as a point of connectivity to the decentralized finance (DeFi) ecosystem, giving users the opportunity to earn a yield on their coins by lending or staking them, Robinhood CTO Johann Kerbrat told TechCrunch.
Users looking to get early access to the Robinhood wallet can join the waitlist. The company will launch a beta version of the wallet this summer, then release the full application by the end of 2022.
New competition
You might remember Robinhood from the Game Stop stock frenzy of late 2021, in which the company restricted users from buying or trading certain stocks, drawing a significant backlash. Since then, and for a variety of reasons including market fluctuations, Robinhood has seen a significant dip in net revenue. In Q1 2022, the company’s crypto trading revenue specifically fell 39 percent.
To make up for these losses, Robinhood has employed an aggressive crypto strategy. In addition to the new wallets, the company is integrating new digital currencies including Solana and Shiba Inu, and is actively promoting different blockchain-related products and services on its platform.
Only time will tell if these new endeavors will increase revenue for the company. If successful, key players like MetaMask and Coinbase will have some new competition.
