TL;DR Breakdown
- Robinhood has taken charge of Cove Markets to actualize grand visions.
- The company hopes to change its influence in the digital market.
- The experienced founders of Cove now are part of Robinhood.
U.S. consumer investing and trading service Robinhood has taken command of Cove Markets, a cross-exchange trading firm. According to the brokerage platform, the new development will enable customers to oversee their crypto accounts efficiently. The details of the deal are unknown.
According to Scott Knudsen, CEO and Co-Founder of Cove Markets, the reputable company was established over two years ago to change the trading experience for crypto investors. They wanted people to acquire the best service out of trading. The company allows its customers to handle their accounts within several platforms. Additionally, they also accumulate a heap of information. Now that the two companies have merged and Robinhood hopes to have world-class services.
The founders of Cove will now be absorbed into the brokerage platform. The two companies share the same visions. They want to make investing in digital assets very swift. Furthermore, they want to reduce the costs involved.
Robinhood wants to advance its trading proficiency
Christine Brown, chief operating officer of Robinhood Crypto, noted that Cove’s expertise would move the company in a competitive position. The crypto trading firm will gain a lot, placing them in a better leadership position in the crypto world.
Cove’s vast knowledge in the crypto market and trading execution will change Robinhood’s ecosystem. They expect to advance their trading proficiency to increase their demand.
The development comes after the U.S based firm took over Say Technologies in a cash deal that exceeded $130 million. This is the first deal since the company’s first significant purchase since they went public. The two companies are a good fit because Robinhood has many retail investors who fancy trading and investing. Say has the technology that links retail investors to the companies they own. The crypto trading platform can now offer an advanced shareholder experience than its competitors.
One Step Closer to launching crypto wallet
Robinhood is very keen on developing on the digital market. The platform is on the verge of introducing a digital wallet. The service will incorporate analytics tools from Chainalysis.
Presently Robinhood’s brokerage app shows users the course of prices. Moreover, it offers more traditional stock trading. Still, the users are limited. They cannot make withdrawals or deposits on the trading platform.
Robinhood has the issue in mind, and they recently said that they are going to change the situation. They noted that users would soon move tokens like in other platforms such as Coinbase. With this new development, they will need to devise ways of dealing with fraud, and it doesnt come cheap.
Robinhood’s stock price has taken a blow since they went public. Yesterday, it was trading at almost $19. This is a significant fall from all-time highs over $65.
