Robinhood Markets, the commission-free brokerage, has broadened the capabilities of its crypto wallet by adding support for Bitcoin (BTC), Dogecoin (DOGE), and Ethereum swaps. This move extends Robinhood’s reach beyond the Ethereum ecosystem, responding to user demand for more diverse asset coverage across various blockchain networks.
Robinhood’s user-centric expansion
Initially launched for Apple devices in March, Robinhood’s wallet was confined to supporting the Polygon and Ethereum networks, along with a select range of tokens like COMP, MATIC, SHIB, SOL, UNI, and USDC. The wallet’s expansion was driven by user demand for broader asset coverage across different blockchain networks.
The wallet now allows select users to trade Ethereum for more than 200 different assets. Unlike other wallets, Robinhood’s platform enables users to swap without holding Ethereum, as network fees are automatically deducted from their existing tokens. Android users can expect this functionality to be available later this year.
Financial and regulatory implications
The expansion comes on the heels of Robinhood’s recent earnings report, which revealed a drop in crypto-related revenue from $38 million to $31 million in the previous quarter. By adding support for popular tokens like Bitcoin and Dogecoin, Robinhood aims to boost its crypto business and enhance user engagement.
Earlier in June, the platform delisted three crypto tokens—Solana (SOL), Cardano (ADA), and Polygon (MATIC)—following intensified U.S. regulatory actions against major cryptocurrency exchanges. Robinhood currently offers 18 different tokens, a relatively limited selection compared to crypto-native platforms like Coinbase.
However, the zero-fee app intends to expand its crypto offerings in response to consistent customer requests for a more extensive set of coins and tokens.
In summary, Robinhood’s decision to expand its crypto wallet to include Bitcoin, Dogecoin, and Ethereum swaps is a strategic move influenced by user demand, financial performance, and regulatory considerations. The expansion not only aims to boost Robinhood’s crypto revenue but also positions the platform as a more versatile player in the competitive crypto market.