3 - 4 minute read
Robinhood, a popular trading app, has announced the launch of its latest investment in the cryptocurrency space, Robinhood Connect. The new service is a fiat-to-crypto on-ramp featuring support for decentralized applications (DApps) and self-custody wallets. Robinhood Connect allows users to purchase and sell cryptocurrency directly to and from their self-custody wallet or natively in DApps using a credit or debit card.
Positioned as a competitor to similar services such as Coinbase Pay and MoonPay, Robinhood Connect features integration with Web3 projects as developers can embed the service directly into applications. This allows customers to access their Robinhood credentials natively in DApps without having to open the Robinhood website or app separately to log in and conduct transactions. Currently, the service is only available in the MyDoge, Giddy, and Slingshot ecosystems, but upcoming support for Exodus and Phantom has been announced.
Johann Kerbrat, general manager of Robinhood Crypto, explained in a company blog post that the service was developed in hopes of bringing more people into the cryptocurrency space: “Crypto and Web3 have the potential to change the future of the financial system for the better, but we recognize there are still significant hurdles preventing broader adoption.”
Introducing our latest investment in crypto, Robinhood Connect: https://t.co/SmENSYufBA
— Robinhood (@RobinhoodApp) April 27, 2023
A low-cost, on-ramp for customers, and a seamless integration for developers. Learn more: https://t.co/rnBnR0LYww pic.twitter.com/6uSIAJkudO
The market for fiat-to-crypto services such as Robinhood Connect isn’t exactly crowded, but Robinhood represents one of the only companies associated with traditional finance to enter the space. As of January 2023, Robinhood claims to have 23 million total user accounts and $74.7 billion in assets under custody. This is significantly lower than Coinbase’s claimed 110 million verified users, but the asset count remains similar (Coinbase says it holds $80 billion in on-platform assets). For comparison, rival companies MoonPay and Webull have an estimated five and 13 million users, respectively.
The Bottom Line
Robinhood’s new service, Robinhood Connect, is a fiat-to-crypto on-ramp featuring support for DApps and self-custody wallets. Its integration with Web3 projects allows for seamless transactions within DApps. The service aims to bring more people into the cryptocurrency space, but traders should be aware of the risks associated with cryptocurrency trading and do their own research before investing.
