Robinhood to let users hold their own crypto and NFTs as it reaches for growth beyond stock trading
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Robinhood is handing over the keys to some of its customers' crypto.
The trading and investing company announced Tuesday it will let users hold and custody their own cryptocurrencies and NFTs in a separate, stand-alone app. It's the latest move in the digital asset space for Robinhood as it reaches for growth beyond stock trading. The company shares are off more than 70% since its IPO.
The new app will Robinhood squarely in competition with Coinbase and start-ups like MetaMask. Coinbase CEO Brian Armstrong called his company's product was the most downloaded, mobile self-custody wallet in the U.S. in a tweet Monday.
The app will let users store NFTs, and connect to NFT marketplaces and «decentralized» stock exchanges. It will also let users earn yield through other platforms and access a «variety» of crypto assets on other exchanges, the company said.
Who holds, or «custodies,» someone's cryptocurrency has become a contentious question in the industry, fueling the viral phrase «not your keys, not your coins.» Some fear storing assets on an exchange makes them more vulnerable to hacks, or censorship.
Robinhood, which topped last year's CNBC Disruptor 50 list, made its name by offering commission-free stock trading. Its value and user base soared during the pandemic as it ushered in new generation of traders. Robinhood also became the center of the meme-stock saga after restricting trading in GameStop, the highly-shorted name Reddit traders bought in defiance of Wall Street short sellers.
The trading business has slowed significantly since last year. For the three months ending March 31, Robinhood's revenue fell 43% from a year ago. Since its public debut in August, shares have plummeted more than 70% and
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