Robinhood: Cryptocurrency User Base Surges, Plans to Open Wallet Function for Deposits and Withdrawals

The popular online brokers Robinhood and eToro have been offering cryptocurrency trading for a while now. eToro, which is planning to go public through a SPAC, and Robinhood, which is also planning an IPO, have recently discussed their future plans in online interviews, with the first question being about cryptocurrencies.

CEO Vlad Tenev first mentioned that they have added 6 million cryptocurrency trading users just this year up to February. As a result, they have decided to expand their investment in the cryptocurrency department and add more cryptocurrency trading options.

Most Users Do Not Want to Manage Private Keys

Vlad Tenev stated that their primary focus is to ensure smooth and secure operation of the platform for trading, and eventually they plan to offer users the option to manage their own private keys.

As for why this option is not currently available, Vlad Tenev mentioned that there have been many internal debates within Robinhood regarding this issue, and the community often requests the ability for users to manage their wallets. He explained that the main reason is that the vast majority of users feel overwhelmed by the idea of managing private keys; they simply view cryptocurrencies as an investment rather than something they want to actively manage. Therefore, they initially introduced wallets that do not support deposits and withdrawals or account transfers. When they further develop their services in the future, they will consider providing users with the option to manage their own keys.

Competing with Coinbase

Vlad Tenev mentioned that users can benefit from trading with Robinhood as it offers the advantage of buying coins on their platform at the lowest cost without any fees, compared to exchanges like Coinbase.