robinhoodpopular trading app, recently announced the addition of new features to its crypto walletincluding support for Bitcoin and Dogecoin, as well as an option to exchange tokens on the Ethereum network.
An expected expansion
Since its launch in September 2022, the crypto wallet of robinhood has undergone a remarkable evolution, both in terms of features and supported networks. Initially focused on the Polygon network, this wallet quickly integrated other blockchains, including Ethereum, Arbitrum, and Optimism, in response to increasingly diverse user demand. This strategy of gradual expansion is not accidental and is part of a deliberate attempt by Robinhood to balance between ease of use and versatility. The recent addition of Bitcoin and Dogecointwo of the most emblematic and most capitalized cryptocurrencies on the market, is therefore a logical continuation.
Towards a democratization of DeFi
Robinhood’s goal is not limited to providing a simple cryptocurrency storage wallet. Johann Kerbrat, the Managing Director of Robinhood Crypto, explicitly stated that the wallet’s mission is to democratize access to the complex functionalities of decentralized finance and the Web3 ecosystem.
“With Robinhood Wallet, we have removed many of the complexities of decentralized finance (DeFi) and the broader Web3 ecosystem, and reduced some of the challenges and barriers to entry for ordinary people”
Johann Kerbrat, Managing Director of Robinhood Crypto
By expanding its network support beyond the initial limits of Polygon and Ethereum, Robinhood aspires to become a versatile gateway to various aspects of DeFi, including token exchanges, smart contracts, and decentralized applications. This move is all the more relevant as DeFi becomes an inescapable part of crypto investing, offering opportunities for returns and diversification otherwise inaccessible through traditional channels.
Technical details
One of the most notable features is the ability to trade tokens on the Ethereum network without having to hold Ether (ETH). This peculiarity solves a common problem in the DeFi ecosystem, where gas fees can often be a barrier for newcomers. In the Robinhood Wallet, network fees are automatically deducted from tokens users already own, eliminating the need to maintain an ETH balance just to cover these fees. This approach greatly simplifies the user experience and lowers the barriers to entry into the world of Challenge. Robinhood hasn’t neglected the security aspect of its wallet either. Users must set up either Face/Touch ID or a custom PIN to access their wallet. Moreover, a secure recovery process is in placeensuring that only the user has access to their private keys.
Despite a slight drop in its trading volume in July 2023, standing at $69.2 billion, Robinhood remains an influential platform in the crypto sector (and also represents the third largest bitcoin holder with a colossal treasury of 118,000 BTCmore than $3 billion) Adding these new features may well revitalize user engagement and increase trading volumeespecially at a time when the platform is looking to expand its influence in the UK.
Source : robinhood