Retail Trading Platform Robinhood Holds Over $2.5 Billion Worth of Ethereum: Report
Arkham Intelligence has identified Robinhood as the owner of the 5th largest Ethereum wallet, containing 1.5 million ETH worth $2.54 billion. The wallet also holds over 100 other ERC-20 tokens valued at $177.1 million. It was clarified that the funds belong to Robinhood’s customers and are backed 1:1 as per SEC requirements. The top four Ethereum addresses larger than Robinhood’s include Ethereum’s beacon deposit contract, a wrapped Ether contract, and addresses belonging to Kraken and Binance. Robinhood’s wallet also includes significant amounts of BTC, Shiba Inu, Chainlink, and Avalanche tokens.
Robinhood Expands Wallet Support for Cryptocurrencies
Robinhood announced the expansion of its wallet product to include support for Bitcoin, Dogecoin, and Ethereum swaps within the app. A select group of users will initially have access to over 200 tokens for swapping, with plans for broader availability in the future. This move aims to simplify DeFi and reduce barriers to entry for everyday users.
Challenges Faced by Robinhood in the Crypto Space
Despite its presence in the crypto space, Robinhood has experienced a decrease in trading volumes. In June, crypto trading on the platform dropped by 68% compared to the previous year. The company reported a decrease in crypto trading revenue in Q2 2023. Furthermore, Robinhood ended its business relationship with market maker Jump Trading, possibly due to the regulatory environment in the US.
Hot Take:
Robinhood’s substantial holdings in Ethereum and its expansion of wallet support for cryptocurrencies demonstrate its commitment to the crypto market. However, the platform faces challenges in maintaining high trading volumes and navigating regulatory complexities. It will be interesting to see how Robinhood adapts and evolves in the rapidly changing crypto landscape.
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