Financial services firm Robinhood Markets Inc. (NASDAQ: HOOD) has announced the launch of its crypto wallets, with a beta release slated for up to 1,000 selected customers.
Robinhood stated that the beta release was done to lay out plans for a broader rollout within the year, with an expanded number of selected users slated for release by March. According to Robinhood CEO Vlad Tenev, demand for the crypto wallet has seen a significant rise. The users for the current phase were selected out of almost 1.6 million applications on a waitlist for the crypto wallet.
The new functionality will allow users to send and receive crypto from Robinhood through a verified external wallet, which will then be subjected through Robinhood’s testing and safety checks. Speculation as to whether Robinhood will list popular meme tokens such as Shiba Inu has spread in the crypto market, given Robinhood's previous listing of Dogecoin.
“Beta testers will help us test core functionality and provide critical feedback to inform the final version of the product.” Robinhood stated in a blog post.
Robinhood will collate statistics gathered from the Beta program’s duration, with data flows set for finalization as the program closes. Robinhood says that it will also work to improve the crypto wallet’s transaction history interface with features such as QR scanning functionalities, as well as a block explorer for on-chain transactions in the development pipeline. Robinhood says that the new crypto wallet functionalities have been built with “world-class security integrations” for monitoring and investment safety.
“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.” Robinhood claimed.
According to Robinhood, beta testers for the program will be given a daily limit of $2,999 for total withdrawals within 10 transactions. Users are required to enable two-factor authentication to qualify for withdrawals.
While Robinhood has seen some success in Q2 2021 posting a record $233 million in crypto revenue, its momentum with commission-free retail investments fell to just over $51 million in the following quarter. Part of this downward turn for Robinhood was the amount of regulatory pressure that it has been subjected to over the past year.
Robinhood’s fourth-quarter earnings will be announced on January 27. Robinhood went public on July 28, 2021 at an IPO price of $38 per share, closing down by 8% on its first trading day.
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