Robinhood Is Testing A New Wallet To Allow Users Withdraw Their Cryptocurrencies, Including Dogecoin
Robinhood has grown so much this year thanks to increased interest in Dogecoin. The trading platform recently revealed that crypto trading made up 50% of its revenue for the second quarter of the year. And that number is expected to grow as Robinhood’s focus falls on crypto. This is why the most recent feature that Robinhood is testing is very important to the company.
One of the major reasons investors have with investing in the trading app is the inability to transfer out their crypto holdings. This essentially means that investors are betting on the price of the crypto they are investing in rather than investing in the coins themselves. If Robinhood rolls out its latest wallet feature, it could eliminate this problem completely for its users.
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Moving Crypto Out Of Robinhood
Bloomberg reported that the online brokerage is in the test phases for a wallet that allows investors to transfer their crypto holdings out of the app. This would be applicable to all of the crypto available for trading on the app. Including its most popular crypto investment option, Dogecoin, which remains the most popular crypto traded on the platform.
According to the report, the trading platform is testing out its new wallet and transfer capabilities to be integrated into its app. Allowing users to be able to transfer out the cryptocurrencies they purchase on the platform. The report claims the existence of a beta version of this on its iPhone app. Also featuring a waitlist for users to be able to use this feature. Implying that this feature will not be immediately available to all of Robinhood’s users.
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The absence of a proper crypto wallet on the app is a pain point for users. Effectively limiting their crypto trades to one platform. Instead of being able to purchase and move around their coins. Robinhood’s CEO Vlad Tenev explained that they were working to rectify this. And that providing a crypto wallet remains a top priority for the company,
“It’s something that our teams are working on. The ability to deposit and withdraw cryptocurrencies is tricky to do with scale, and we want to make sure it’s done correctly and properly.”
Dogecoin Taking The Lead
One can essentially say that the rise of Robinhood came with the rise of Dogecoin. Although the company had been operating long before the Dogecoin craze, it really only came into the forefront when users started purchasing the meme coin on the platform due to its ease of use.
Dogecoin trending around $0.21 | Source: DOGEUSD on TradingView.com
In its second-quarter earnings report, the company revealed that of the 50% revenue that crypto trading brought in, Dogecoin trading had made up 62% of the total volume. The total revenue from crypto trading was $233 for the quarter. And with Dogecoin bringing in 62%, the digital asset Brough in $144 million in revenue for the trading platform. Making this its highest-selling offering.
Featured image from , chart from TradingView.com