The eagerness surrounding Dogecoin produced decent revenues for stock-trading app Robinhood, which announced it will unveil a new feature that will let users to use a digital wallet and make cryptocurrency transfers on its app.
Crypto wallets are digital storage systems where users can safely keep virtual coins. Crypto coins that trade on Robinhood, including bitcoin, ethereum, and dogecoin can be kept in the crypto wallets, Robinhood said.
Robinhood plans to trial the new feature with a small number of users first before it will expand the availability to more people in the long run.
Robinhood has the keys
The crypto wallet will use a custodial system, meaning, Robinhood will be in charge of managing the keys users need to unlock the wallet.
Robinhood said it will start rolling out the crypto wallets in October. Shares of the company advanced nearly 11% on Wednesday.
The new feature will open Robinhood up for many of the big opportunities in the crypto market that competitors such as Coinbase have been able to capitalize on.
“We are not the first to the market. We have been taking our time to make sure we build this in a phased approach,” Robinhood Chief Product Officer Aparna Chennapragada said in quotes by CNBC.
Getting their thoughts
Chennapragada said they will have a few customers to iterate on the new offering, get their feedback and then expand from there.
Chennapragada worked with Google for 12 years, leading the company’s product, engineering and design teams before joining Robinhood.
Robinhood promised to make public whatever feedback early users give on the crypto wallet. Initially, the wallet will support bitcoin, ethereum and dogecoin.
Last year and 2021 have been breakout years for cryptocurrency, with tokens climbing and falling throughout the period but registering much higher gains overall.
Based on estimates by CoinMarketCap, the world’s market valuation for cryptocurrencies remains at just a little below $2 trillion.
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