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Robinhood has announced plans to launch a standalone custody DeFi wallet that will allow users to transact digital currencies and NFTs.
Robinhood Markets Inc (NASDAQ: HOOD) plans to venture deeper into the world of crypto with an upcoming DeFi wallet. According to the stock trading and investment firm, the new wallet will be a standalone custodial product heavily driven by Web3 technology. Furthermore, Robinhood explained that its crypto wallet would grant users full control over their digital assets, including crypto and non-fungible tokens (NFTs). Such user control entails trading, swapping, lending, staking, yield farming, and buying digital assets across decentralized exchanges and NFT markets. Slated to launch by the end of this year, the Robinhood DeFi wallet already has a waiting list.
Operational Insight into Incoming Robinhood DeFi Wallet
Speaking on the development, Robinhood co-founder and chief executive officer Vlad Tenev stated:
“At Robinhood, we believe that crypto is more than just an asset class. DeFi has the potential to be the operating system that powers the future of financial services, and we want to help people experience the full range of possibilities that these revolutionary technologies have to offer.”
In addition, Tenev highlighted the dual trading-class purpose of Robinhood’s digital asset wallet, which will cater to both advanced and neophyte users.
“With our web3 wallet, we’re building a product that will satisfy the most advanced DeFi believers while creating a secure on-ramp for those who are just starting out in crypto to go deeper into the ecosystem,” said he.
An added perk to the Robinhood DeFi wallet usability is that the firm will cover required gas fees for transactions. According to Johann Kerbrat, Robinhood’s crypto CTO, the company does not want customers to lose any funds to transaction fees. In addition, Kerbat also stated that Robinhood would be collaborating with liquidity partners to get the best prices. However, Robinhood is yet to state which blockchains its upcoming custodial wallet intends to support.
Furthermore, the Robinhood crypto wallet will directly compete with similar products from MetaMask and Coinbase for user crypto-controlled wallet market share. This marks a growing trend of traditional and crypto-centric companies operating in the crypto ecosystem launching products in DeFi.
Ease of Use
Robinhood intends for its upcoming digital asset wallet to be user-friendly and easy to access. As a result, the financial services company plans to provide adequate user access to educational materials that cover DeFi. This may also come as a direct response to past criticism that Robinhood exposes unsophisticated traders to complex financial instruments. On this, the California-based firm stated:
“We will give you access to everything, but we will show you warnings on things that are risky. But at the end of the day we are not making decisions for you.”
Robinhood currently operates an existing wallet. However, it does not have as many Web3 capabilities or flexibilities as the upcoming one.