Robinhood Markets Inc, one of the fastest-growing American retail financial services companies has kickstarted the testing of its Crypto Wallets, as it seeks to open up the economy around the cryptocurrencies purchased on its platform. The company said the testers are limited to the first 1000 users that registered for the wallet waitlist, and that it will expand the testing to about 10,000 users by March.
Since Robinhood ventured into the digital currency trading ecosystem, customers can buy cryptocurrencies from its platform, however, they cannot trade or send the acquired coins to external wallets. The limitations this brings have largely spurred criticisms for the company, and the proposed wallet launch is billed to help Robinhood tag along with its major competitors such as Coinbase Global Inc, and Gemini.
Marked as the second major milestone in its plans to roll out functional wallets for its users, Robinhood said its enlisted testers will be able to send and receive their crypto from Robinhood to external crypto wallets, and fully connect Robinhood crypto holders to the greater blockchain ecosystem for the very first time. Daily transaction limits are pegged at $2,999 for each user, and these can be used up for about 10 cumulative transactions.
“Beta testers will help us test core functionality and provide critical feedback to inform the final version of the product. Over the duration of the Beta program, we will finalize the send and receive flows, add delightful QR scanning experiences, improve the transaction history interface, and add block explorer support to provide more insights into their on-chain transactions,” the company said in the official update.
Positioning for a Crypto Driven Future
It is no news that cryptocurrencies are growing at a very fast pace, and many traditional financial institutions and Fintechs are exploring ways to tag along. From the integration of cryptocurrency payments by Paypal Holdings Inc and Cash App to the development of Novi Wallet by Meta Platforms Inc (formerly Facebook), it is no news that many tech giants are unwilling to sit on the sidelines as the crypto ecosystem evolves.
By rolling out the crypto wallets, Robinhood will be rightly positioned to tag along with the growing adoption of digital currencies in the United States as well as in other regions where it plies its trade.
“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. We’ve built world-class security integrations to monitor all transactions, ensuring that customers are able to both safely invest and transfer their crypto,” Robinhood said.