Cryptocurrency may be experiencing difficult times, but developers who recognize the technology’s value are pushing harder than ever. Robinhood announced the debut of its beta Web3 wallet less than 24 hours ago. The wallet allows 10,000 clients on the waiting list to join in the testing phase.
In May of this year, the crypto entity initially announced the idea of developing a wallet solution. Robinhood Wallet will be the company’s first app to be made available abroad.
The application, exclusive to Apple mobile devices, would apparently allow users to trade cryptocurrencies with “no network fees” and earn income by connecting to other decentralized services (dApps).
Robinhood taps Polygon for a Web3 wallet
Robinhood Markets has demonstrated a significant interest in developing crypto products and services in the past year. The crypto entity began rolling out the beta version of their cryptocurrency wallet that supports bitcoin (BTC), dogecoin (DOGE), and ethereum at the end of January 2022.
In April, Robinhood increased the number of customers with crypto wallets to 2 million. In mid-May, the financial services firm hinted at the availability of a Web3 wallet that does not require a custodial account.
The beta version of the Web3 wallet will first support the Polygon (MATIC) network, a proof-of-stake (PoS) Ethereum-compatible blockchain. Robinhood’s Web3 wallet will support anything connected to the Polygon network, such as third-party decentralized finance (defi) protocols and decentralized applications (dapps).
Oliver McIntosh, senior product communications manager at Robinhood, stated that Ethereum’s transition to a proof-of-stake (PoS) consensus method was not a factor in the company’s choice to choose Polygon. Instead, he explains that:
Leveraging the Polygon network provides a strong infrastructure for Robinhood Wallet due to its scalability, speed, low network fees, and robust developer ecosystem to provide one of the best trading experiences for customers. We are excited to partner with Polygon for our initial launch and look forward to offering multichain support in the future.Oliver McIntosh
On Tuesday, the crypto entity explained that Polygon was selected due to its low network fees and “scalability and performance.” The CTO and general manager of Robinhood Crypto, Johann Kerbrat, stated that the “Robinhood Wallet simplifies web3 to make crypto more accessible to everyone.”
In addition, beta users will have direct access to dApps on the Polygon network, including DeFi apps like Uniswap, Balancer, and Kyberswap, and metaverse games like Decentraland.
Reports indicate that the Robinhood team will expand multichain wallet capabilities over time beyond the Polygon ecosystem. The beta version of the wallet will not support NFT trading or marketplace operations; this feature is scheduled for the final release.
The choice to choose Polygon as their exclusive blockchain partner was based on the network’s “scalability, speed, cheap network fees, and large developer environment,” according to the crypto establishment.
According to the firm, Beta users will be able to load their wallets with USDC stablecoin tokens, trade and swap cryptocurrencies, and connect to dApps to generate yield.
What does the future hold for Polygon, Robinhood, and its investors?
A June 2022 report indicated that bitcoin derivatives exchange FTX is interested in acquiring Robinhood. Considering that FTX acquired Voyager Digital yesterday, this is a possibility at the end of it all. The current market trade position for FTX will rocket it to the most sought-after crypto exchange, with the potential to dethrone Binance.
Although an official takeover decision has not yet been made, Bloomberg’s contact stressed that the exchange has not yet approached Robinhood with a purchase offer and that the debate was strictly internal.
In subsequent revisions, the wallet will support the nonfungible token (NFT) market. Over one million individuals have joined up for the waitlist, as reported by the crypto corporation. The crypto entity stated on Twitter that it is still accepting users for the Wallet waitlist. However, it did not specify when the service would become freely accessible.
The company stated that they intend “ultimately become a multichain wallet that supports a large number of blockchains.”
If the new wallet is successful, the financial entity will have successfully introduced a portion of its millions of customers to a Web3-like experience. Robinhood Wallet will be another costly diversion for a company in dire need of a turnaround if it fails due to its restrictions.
Following the launch, during Blockwork’s Permissionless event in West Palm Beach, Florida, co-founder and CEO of Robinhood Vlad Tenev stated that the product aimed to simplify the frequently “clunky” and “cumbersome” design present in decentralized banking, Web3, and non-custodial wallets.
With self-custody, or complete ownership over their funds, and frictionless access to the decentralized web, this integration will allow Robinhood to build on its success in the stock markets and attract more crypto users.