Robinhood Financial LLC, which develops a popular free stock trading app, can compete in the crypto trading market due to low commissions
The project developers plan to launch Bitcoin and Ethereum sales services through their mobile application as early as next month. The move will allow Robinhood to bring its traditional products to the attention of the crypto community.
“We view the introduction of cryptocurrencies as a way to expand our user base and build our brand,” said Robinhood Chief Executive Officer Vlad Tenev.
Robinhood officials say there are no plans to charge fees and payments will only be made for cryptocurrency transactions. In addition, Robinhood promises its users instant cryptocurrency transfers for purchases under $1,000, which significantly speeds up the payment process.
While offering a free service could be risky, Tenev said the company hopes to attract investors to the platform and its products, which are already generating revenue. Similar to a traditional banking system, the company generates revenue by collecting interest on cash and securities in user accounts. Also, paid content for the premium Robinhood Gold service is planned, which will provide a number of benefits to users.
To begin with, users of California, Massachusetts, Missouri, Montana and New Hampshire will be able to use the free crypto trading service, but by the middle of this year the offer will become available to more clients.
Robinhood's future plans are to provide its clients with access not only to Bitcoin and Ethereum, but also to 16 other different cryptocurrencies. Using the Robinhood app, customers can track market rates, news, and create alerts by adding digital currencies of interest to their “watch list.” To date, there is no information on whether trading in other currencies will be launched, but work in this direction is underway.
“We are now focused on the main coins, and I think that in the near future we expect the possibility of adding other cryptocurrencies before we move on to new asset classes,” said Vlad Tenev.
According to coindesk.com
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