Robinhood, the popular stock trading platform, has announced that it is developing a non-custodial cryptocurrency wallet.
After launching a custodial crypto wallet in April, Robinhood has announced that it is developing a non-custodial crypto wallet, calling it a “web3 wallet that will allow customers to have total control of their crypto.” Robinhood will be launching the beta this summer.
Robinhood is a FINRA-regulated broker-dealer, registered with the U.S. Securities and Exchange Commission, and is a member of the Securities Investor Protection Corporation. The number of Robinhood users has grown from half a million in 2014 up to 22.8 million as of March 2022. The app’s net revenue did also grow steadily since its official launch, reaching 91 million U.S. dollars as of second quarter 2021
The company already has a crypto wallet, but it is custodial. Robinhood says that its new wallet will be a standalone app and will feature a simple and intuitive design. The main difference between a custodial and a non-custodial wallet is that, in the case of the latter, the users alone hold the private keys to their crypto assets. Non-custodial wallets offer improved security owing to their private nature. However, it is a double-edged sword.
Where you can recover your crypto assets if you forget your credentials when using a custodial wallet, with a non-custodial wallet, you’ll lose access to your crypto assets forever if you forget your private keys.
Robinhood’s new wallet will also allow you to trade digital currencies, including NFTs and Defi protocols, without any fees. The company is planning to launch the beta this summer, followed by a full release before 2023.
