Robinhood Trials New Wallet Feature For Crypto Withdrawals

Bloomberg reports that Robinhood is trialing a crypto wallet feature that allows users to perform settlement transactions with digital assets like BTC. The news media firm claimed to have had a brief overview of the feature’s beta version through the platform’s app. The news firm further claimed that there is already a waitlist of users ready to start using the wallet once it is launched.

The report further claims that crypto transfers on the app will use code referrals. As of this writing, users of this retail trading platform can only make purchases in fiat but can trade the financial market with cryptocurrencies. But this new feature will make deposits and withdrawals in crypto possible.

Robinhood Finally Yields To Repeated Yearnings Of Its Users

Digital asset traders on the platform have repeatedly called for the company to introduce the feature for crypto deposits and withdrawals. The call increased this year with the increase in the number of dogecoin community members on the platform.

Hence, it was no surprise when Robinhood’s chief executive, Vlad Teneve, revealed during the last quarter-earnings briefing that the company would explore having such a wallet.  Tenev confirmed that the company is excited to introduce this feature after repeated calls from “our users, especially the Dogecoin ecosystem.”

Robinhood’s Crypto History

The retail trading firm inaugurated its crypto services in five states of the US three years ago. But it has expanded its crypto-related services to 46 of the 50 states in the US. The company’s Q2 earnings report showed that Robinhood’s decision to venture into crypto services was the right one.

According to that report, 42% of their Q2 earnings were crypto-related. This pales significantly to their crypto earnings for the whole of last year, where only about 1% of their earnings were crypto-related. At the beginning of this month, Robinhood announced the launch of a monthly-yielding digital asset investment program where users can earn yields by investing in various digital asset positions. 

Robinhood joins the list of top companies in different industries expanding their payment options to include virtual currencies. Last week, Movie theater giant AMC Entertainment announced that movie buffs would be allowed to make payments in BCH, ETH, and LTC by the start of next year. Also, Adobe recently revealed that its users could start making payments in digital currencies from Q4 2021 through their PayPal dashboard.

Hawkish Fed Decision Causes BTC Price Spike

Bitstamp data revealed that BTC surged to a daily peak of $44K following the Fed’s dovish stance regarding interest rates. 90% of the FOMC members strongly agree that there is a need to increase interest rates beginning from 2022.

However, the FOMC revealed that it may soon start reducing its bond purchases, saying, “if data shows that there is steady expansive progressive, we may start reducing the rate of asset purchases from our end.”

But Fed chief, Jerome Powell, opines that the current inflation rate may not subside over the next few months. He further said that the Fed’s asset purchase program might be ended by the second quarter of next year.