— Robinhood (@RobinhoodApp) July 7, 2022
“Crypto transfers are here,” stated the exchange via Twitter. “You can now send and receive all listed crypto assets on Robinhood.” The Tweet surprised many as it also included a video announcing that Robinhood will not charge for transfers between wallets.
Robinhood is no stranger to crypto considering that the platform began dabbling in crypto in the summer of 2018. The brokerage initially offered two cryptocurrencies, Bitcoin and Ethereum, while allowing investors to track the market data for 16 others. The platform initially grew in popularity due to its commission-free trading model, however, as more brokerages began to offer similar benefits the exchange’s stock price began to tumble.
While Robinhood quickly grew in popularity after announcing their cryptocurrency involvement, many users began to criticize the platform due to its inability to allow crypto investors to withdraw or send cryptocurrency. Many investors prefer to move their assets off of exchanges due to uncertainty, a justified concern after witnessing the collapse of both Celsius and Voyager. After hearing from users, Robinhood began to test their cryptocurrency withdrawal and transfer features in September of 2021, with users soon being able to join 1.6 million users on the waitlist.
By allowing users to join the waitlist, and now delivering on their promise, many have begun to see Robinhood as a crypto exchange. After adding the ability to send, receive and transfer crypto assets, Robinhood hopes to match other exchanges. Whether the implementation of sending, receiving and transferring crypto assets will push Robinhood forward as a cryptocurrency brokerage or not, is still to be decided. However, allowing users to move their assets across wallets and to multiple exchanges is always needed.