Robinhood Wallet rolls out on iOS with Android support to follow
Robinhood, the trading platform that gained popularity for its commission-free trades, has launched its Web3 wallet on Apple's App Store. This new feature is now available to iOS users in over 130 countries, and Robinhood stated that the wallet will come to Android "later this year." This move comes after the beta launch of the Robinhood Wallet in September, where the platform integrated Ethereum and added more than 50 ERC tokens that can be bought, sold and held on the self-custody wallet.
Robinhood Crypto general manager Johann Kerbrat said that the support for Ethereum and ERC-20 tokens came in response to customers wanting access to more coins and tokens on more chains. Among the tokens now supported include USDC (USDC), UNI (UNI), MATIC, and more. These tokens can be traded without paying transaction fees, and users can use these cryptocurrencies to interact with a range of decentralized applications (DApps).
One of the significant features of the Robinhood Wallet is that it is self-custodied, meaning that users have complete control over their funds. However, Robinhood has implemented a range of self-verification methods to provide security to its Web3 users. When users get started, they need to set up either Face/Touch ID or a custom PIN, which they'll use to authenticate every time they open the app. They will also be asked to create a secret recovery phrase, also known as a seed phrase, that allows them access to their wallet and crypto. Robinhood stated that users "can — and should — back up their wallet" by writing it down, storing it offline, or saving it in a secure manner.
However, not everyone is on board with the security mechanisms set in place with the Robinhood Wallet. A Reddit poster by the name of "StamInBlack" wasn't happy with the option of having seed phrases stored on iCloud, while others in the same thread expressed unrelated reservations with the trading platform.
Despite these concerns, Johann Kerbrat said that the feedback on the Robinhood Wallet thus far has been "extremely positive." The rollout comes two days after Robinhood Markets revealed in a 10-K filing that it received a subpoena from the United States Securities Exchange Commission (SEC) in December to conduct an investigation into its cryptocurrency listings, custody, and platform operations.
The Robinhood Wallet's integration with Ethereum and ERC tokens provides users with the ability to trade a diverse range of tokens without transaction fees, expanding the platform's cryptocurrency offerings. This new feature positions Robinhood as a significant player in the Web3 wallet space, and its availability on Apple's App Store makes it more accessible to a global audience. However, concerns remain about the security mechanisms in place, with some users expressing dissatisfaction with the option of having seed phrases stored on iCloud.
Overall, the Robinhood Wallet's launch is a significant development in the cryptocurrency industry, as it further normalizes the use of self-custody wallets and highlights the growing demand for decentralized financial services. It remains to be seen how the platform's expansion into the Web3 wallet space will affect the overall cryptocurrency market and whether Robinhood will face any regulatory challenges in the future.