Robinhood Shares Jump On Crypto Wallet Launch On Android, UK Debut
Robinhood (NASDAQ: HOOD) has announced the availability of its crypto wallet app for Android users. The Robinhood Wallet app, now accessible on Google Play, allows users to own and manage a variety of blockchain assets directly from their devices.
Notably, the app boasts support for popular cryptocurrencies such as Ethereum, Bitcoin, Dogecoin, Arbitrum, Polygon, Optimism, and Base. Users can also leverage decentralized exchange aggregators to swap thousands of tokens across Ethereum, Arbitrum, and Polygon networks.
Since its launch on the Android platform, the Robinhood Wallet app has quickly gained traction, surpassing 10,000 downloads in a short period.
The firm’s shares jump more than 7% on the day following the announcement, with the company gaining over 50% year-to-date in market valuation.
Johann Kerbrat, General Manager of Robinhood Crypto, revealed statistics regarding the brokerage’s iOS crypto wallet, which launched in March 2023, noting the app was downloaded “hundreds of thousands of times in 140+ countries.” Moreover, the iOS wallet’s waitlist exceeded 1 million users at the time of its launch.
Both the Android and iOS versions of the Robinhood crypto wallet operate as self-custody wallets, ensuring that users have full control over their private keys. This approach enhances security by eliminating reliance on third-party custodians, with users able to back up their wallets via Google Drive or iCloud.
Robinhood’s foray into crypto extends beyond wallet services. The firm allows users to trade major cryptocurrencies and altcoins directly on its platform, with the Robinhood Connect initiative, launched in 2023, enabling users to fund their crypto wallets seamlessly through purchases within the brokerage platform.
Despite a slight decline in annual transaction revenue from crypto trading activities in 2023, Robinhood remains a major player in the crypto space. The firm reported $135 million in transaction revenue last year, representing a 33% decrease compared to 2022.
Additionally, Robinhood currently holds over $14 billion worth of clients’ cryptocurrencies, reflecting a substantial increase from $8.4 billion in holdings in 2022.
UK debut
Alongside the Android debut of the firm’s app, Robinhood has also officially launched its services in the United Kingdom.
Unlike its operations in the US, where Robinhood profits primarily from payment for order flow, this model is not permitted in the UK. Instead, Robinhood plans to generate revenue through gold subscriptions and interest earned from customer deposits. While margins and options trading are not yet available, the company is actively working with regulators to enable these features in the near future.
Jordan Sinclair, President of Robinhood UK, expressed excitement about the platform’s UK launch, emphasizing the company’s commitment to delivering value to customers.
“We’ve been actively gathering feedback and engaging with customers since our waitlist launch at the end of last year, and have been so encouraged by the reception we’ve received thus far,” Sinclair said.
Since opening its waitlist in November, Robinhood has received positive feedback from prospective UK users. Key highlights include praise for the absence of commission and foreign exchange fees, appreciation for investor protections, and enthusiasm for features like 24-hour market access and fractional share trading.
The firm previously launched crypto trading services in Europe on December 7, 2023. The EU Robinhood Crypto app offers access to over 25 cryptocurrencies for eligible customers in the European Union region.
Robinhood last traded at $18.54 on the NASDAQ.
Information for this briefing was found via Coin Telegraph and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
