Robinhood Launches Crypto Wallet to 2M Customers
- Robinhood’s crypto wallet, which was rolled out to 2 million users, will not support Ethereum-based services like ERC-20 tokens and NFTs.
- The trading app also revealed it had plans to integrate the Bitcoin Lightning Network, reducing the time and fees associated with transfers.
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Popular trading app Robinhood has rolled out its cryptocurrency wallet to more than 2 million users, finally exiting from the beta stage of the feature, the company said in a blog post on 7 April.
The announcement was first made by Robinhood chief product officer Aparna Chennapragada on stage at the Bitcoin 2022 conference in Miami, where she said that all eligible customers who were on the wallet’s waitlist — more than 2 million people — can now send and receive crypto that is on Robinhood’s trading list.
Robinhood’s wallet will not be available to customers in New York, Nevada, and Hawaii due to “local regulations”. It also has limited functionality, and does not support Ethereum-based services like ERC-20 tokens and non-fungible tokens (NFTs), with Robinhood saying on their FAQ page that any unsupported token sent to customer accounts “may be lost” and that the transactions are irreversible.
The trading app’s wallet was first announced in September 2021, and completed its first alpha transfer using Dogecoin (DOGE) in November. The beta version was then launched in January to tens of thousands of customers. To activate Robinhood’s wallet, users will have to go through a KYC process and activate the two-factor authentication on the website. It also features a $5,000 24-hour limit on outbound transfers.
During her time on stage, Chennapragada also revealed that Robinhood was working on integrating the Bitcoin Lightning Network, which will not only reduce the time and cost of transactions, but also lower their carbon footprint. During last quarter’s earnings call, Robinhood CEO Vlad Tenev also stated that the company was working on a staking feature and that it had invested in the necessary tech. The feature may take some time to release though, as “there’s lots of regulatory attention here” and it needed to be compliant.
- The crypto exchange confirmed on Tuesday that it has started the process of integrating the technology, and that it is already running Lightning Network nodes.
- Crypto exchanges Kraken, OKX, and Bitfinex have already integrated the technology into their platforms, while Coinbase said it will do so in the future.
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- The Algorand wallet provider has warned users to withdraw their assets from mnemonic wallets after an attacker targeted a group of “high-profile MyAlgo accounts”.
- The root cause of the attacks remains unknown, with MyAlgo still investigating the issue, but reports have indicated that close to $9M were stolen so far.
- The U.S. Department of Justice has seized close to $470 million in Robinhood stock, and an additional $20 million in U.S. currency, as part of its criminal case against Sam Bankman-Fried.
- Lawyers for SBF argued last week that the Robinhood shares were bought legitimately by SBF, using money borrowed from Alameda, and that he was relying on them to fund his defense.