Robinhood plans ETH wallet that will allow for DEFI and NFT trading, joining the ranks of Metamask and Coinbase by the end of the year so let’s read more today in our latest cryptocurrency news.
Robinhood’s new wallet will give customers control over crypto and NFTs and the new wallet will compete with the likes of MetaMask and coinbase. There is an open waitlist for the wallet which is expected to launch by the end of the year. Robinhood is getting deeper into the world of crypto and announced that the company is creating a standalone wallet that will provide customers will full control over their crypto assets. The company also is in the process of rolling out wallets to millions of users but the wallets are managed by Robinhood.
The new product will be akin to Web3-focused products like Coinbase Wallet and MetaMask which give users full control but require them to manage their own private keys. As per the company, the upcoming wallet will allow users to trade and swap crypto with no network fees and to also store NFTs, and access DEFI services. Robinhood’s crypto CTO Johann Kerbat said that the new wallet will look to replicate a no-fee model for which the company is known. Kerbrat added:
“We talked to a lot of people [who said] ‘you start with a certain amount of money and once you get the NFT or asset you want, you have 50% less money because of transaction fees’.”
It is not clear how exactly Robinhood will achieve its plans in the case of the Ethereum blockchain especially since users must pay higher fees of over $100 at times of high congestion to ensure the transaction is processed. As per Kebrta, a part of Robinhood’s solution will entail partnership with the liquditiy partners to get the best price. In a response to the question about whether Robinhood’s no-fee plan is relying on the ETH upcomign swtich to PoS network and there are plenty of other solutions to deliver on the vision.
As for the wallet, Kerbrat noted that it will have a smooth interface and design with the traditional strengths of Robinhood and will be a major focus as the company develops the new wallet. He added that the platform is working to ensure that there are guard rails for the new users that are at risk of losing their funds because of a lack of familiarity with storing the private keys. Such design features could help Robinhood stand out and work similarly to MetaMask which is widely used. Robinhood plans to try out a beta version of the wallet over the summer with the goal of making them available by the end of the year.
Also, the company has been losing key staff recently but there is a wild card that can shape Robinhood’s future. SBF – Sam Bankman Fried took an 8% stake in the company which could bring a lot of changes to the company if he decides to.