The Robinhood brokerage platform wants to expand into crypto and extend its investment products. The company announces to prepare functionalities of deposit and withdrawal of cryptomoney.
Another boost to the democratization of cryptonics? The American trading platform Robinhood plans to add new services in the field of crypto. It will be equipped, at an indefinite date, with withdrawal and deposit functions.
To date, Robinhood proposes to its clients to buy and sell 7 cryptos, including Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), Litecoin (LTC), Ethereum Classic (ETC), Bitcoin Cash (BCH) and Bitcoin SV (BSV). However, customers cannot directly manage their crypto-actives there.
Robinhood won’t use his clients’ crypto.
So that’s going to change. Eventually, users will be able to access the tokens themselves in order to transfer them to other portfolios. Robinhood will offer for this purpose a custody service with a conservation on its own wallets.
The company provides some details on this subject. « We fully intend to provide the ability to deposit and withdraw cryptographic data, including DOGE. « It is not yet known whether the 7 crypto’s available on Robinhood will be affected.
Furthermore, the platform insists on the fact that it « does not currently invest in cryptography. « Similarly, it adds that it « does not use a client’s cryptography for its own benefit », as some exchanges do.
A platform in search of lost trust
« Cryptomoney purchased and held by our customers is held and kept in our portfolios for the benefit of our customers. In addition, we do not receive coins until our clients’ transactions have already been settled, » Robinhood says.
But will the online broker be able to reassure clients following recent controversial decisions? On January 29th, Robinhood suspended instant deposits in fiat currency for the acquisition of crypto. These were active again on February 4th.
The platform justified this decision by « extraordinary market conditions ». However, it was already under fire from critics for freezing the purchase of certain titles, in particular GameStop. This unilateral policy has led to strong accusations.
These controversial episodes could discourage users from depositing their crypto-currencies for fear that a unilateral decision by Robinhood would result in the immobilization of their assets. In order to be convincing, the company will therefore have to restore trust.