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Robinhood share price jumps after news of crypto wallet emerges

Robinhood Share Price

The Robinhood share price is up by 6.46% over the past five days as news emerged that the company is testing its own version of a crypto wallet. The move raises some questions over how the Nasdaq-listed company will fare by its move into the crypto space. While the app already allows users to buy and sell crypto, its latest move would enable them to store it all in one place.

The recent spike in its share price comes as welcomed news the Robinhood share price had been trading lower following its Q2 earnings. While the Reddit-induced retail frenzy was pumping up trading levels, the trend appears to have cooled down somewhat. Its pivot to offering crypto wallets could potentially give the company some momentum moving forward.

Crypto Wallet

Robinhood confirmed on Wednesday its intention to test crypto wallets, with a wider roll-out in early 2022. Users will be able to move supported cryptocurrencies in and out of their brokerage accounts.

Customers of Robinhood have demanded that the company provides the service, as crypto transactions exceeded equities for the first time during the last quarter.

“This is the natural next step for us when we think about democratizing finance for all, being able to have a lot more people from a lot of different contexts participate in this emerging market, and wallets are the key,” Aparna Chennapragada, Robinhood’s chief product officer, said in an interview.

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The company intends to survey its current crypto-trading customers, around 60% of the app’s 21.3m active users, and pick small group of respondents to begin testing the new wallets and provide feedback, Chennapragada said.

By Robinhood increasing its exposure to crypto, it could also help to reduce risk of its current revenue streams, as other areas of its business have faced question marks recently.

Robinhood said it would receive 0% commissions for crypto trades once the wallets are launched.

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