Robinhood Markets Inc. HOOD, +10.85 percent is launching out a new feature that will let users to utilize a crypto wallet and conduct cryptocurrency transactions on its app.
Crypto wallets are digital storage spaces where digital currencies may be safely stored. According to Robinhood, digital currency traded on the platform, such as bitcoin BTCUSD, 0.30 percent, ethereum ETHUSD, 1.21 percent, and dogecoin DOGEUSD, -1.26 percent, will be able to be kept in crypto wallets.
While Robinhood customers can currently purchase and sell cryptocurrencies, this will be the first time they can manage all of their cryptocurrency holdings using a wallet within the app. Coinbase Global Inc. COIN, +1.42 percent and Gemini Trust Co. are two other firms that provide cryptocurrency wallets.
“Robinhood crypto wallets will allow you to move your crypto in and out of your app in a few taps,” the company announced. “Send your crypto to other wallet addresses and receive supported cryptocurrencies into your Robinhood account.”
A company spokesman said that Robinhood's crypto wallets will be accessible to select customers in October and to all account holders in early 2022.
The news comes only days after Robinhood started enabling consumers to set up regular cryptocurrency purchases.
Robinhood users could only set up automatic buys for equities and ETFs before this release, but not for bitcoin.
During the past quarter, bitcoin trading accounted for more than half of Robinhood's $565 million in transaction-based income. Last week, Robinhood issued a warning to anybody considering investing in cryptocurrencies, stating that “crypto markets may be volatile.”
The stock of Robinhood, which launched on Nasdaq in late July, was up 2.86 percent in Wednesday trade.