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TL;DR Breakdown
- Robinhood is working to enable a crypto deposit and withdrawal function.
- This will enable users to transfer their cryptocurrencies to external wallets.
The popular American stock brokerage application, Robinhood, has announced it is working to enable a cryptocurrency withdrawal and deposit function on the platform. This will enable cryptocurrency users on the application to transfer coins like Bitcoin, Ether, etc., directly to the platform. The development is coming a few days after the trading app made headlines for preventing users from buying certain assets on the platform, including the meme cryptocurrency, Dogecoin.
Robinhood is preparing crypto transfer functions
The company made this known in a tweet on Wednesday. Note that Robinhood had already previously supported some cryptocurrencies on their platform. However, users can only buy cryptocurrency on the platform with fiat currencies and sell it back, just like PayPal. There isn’t an option for them to deposit or transfer the digital currencies to preferred external wallets, as with cryptocurrency exchanges. However, Robinhood is now looking to enable this function.
Per the update, Rohibhood has already begun working to enable this feature on its platform. However, they didn’t specify the exact date where this transfer feature will be completed. It’s also unknown whether the deposit and withdrawal function will be enabled for the seven cryptocurrencies supported on the platform. Robinhood supports Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dogecoin (DOGE), Bitcoin Cash (BCH), Bitcoin SV (BSV), and Ethereum Classic (ETC).
Robinhood doesn’t invest in crypto
The company stated that the cryptocurrencies deposited on their platform would be custodied by their wallets. Again, they also mentioned that they don’t invest in cryptocurrencies at the moment “or use any customer cryptocurrency for our own benefit.” Amid the question, many people are asking whether the users can access their private keys.
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