US trading app Robinhood has announced a $363 million Series D funding round that it says will help the firm expand what is arguably its largest cryptocurrency platform.
After completing a new round of funding, the startup reached a valuation of $5.8 billion. Robinhood is now poised to become one of the 15 most valuable private tech companies in the United States, along with SpaceX, Uber and Airbnb. Robinhood's value has more than quadrupled from the previous year.
After such a successful round, the firm said it now plans to expand its sales activities, which are currently available in 10 US states, once it receives the necessary licenses.
One of the founders of Robinhood and CEO Baiju Bhatt said that the funds received will be used to expand the product and service infrastructure. Bhatt also noted that he expects Robinhood to “become either the largest or one of the largest crypto platforms” by the end of this year.
The platform, which launched as a smartphone app, now has a web interface and allows users to store crypto assets in the same account they use to trade stocks. Therefore, the app may be preferable for people who primarily view cryptocurrency as an investment rather than a financial instrument. Robinhood does not charge clients a commission for carrying out transactions, unlike brokers. The startup makes money from client account balances and subscriptions, which expand trading potential.
The service recently launched commission-free trading in Bitcoin (BTC) and ether (ETH). Thanks to this, its audience increased by almost a million users. The service also allows you to track 16 other cryptocurrencies, including ZCash and Ripple. Trading of these assets has not yet been announced on Robinhood.
Thus, Robinhood has become a serious competitor to the largest American crypto exchange Coinbase.
On May 7, in a blog post, the Robinhood team expressed its intention to expand its operations to Australia and other American states.
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