Robinhood To Build Web3 Wallet in Bid to Capture NFT Hype

    Robinhood, a stock trading website, has announced plans to launch a new digital Web3 wallet that would allow users to store and connect their NFTs to online marketplaces for the first time.

    Robinhood 3 launch

    In a news release on Tuesday, the company said that its new non-custodial “Robinhood 3” wallet would allow users to keep their own crypto keys, earn yield, and trade or swap crypto, including non-fungible tokens, without paying network fees. The corporation also stated that there would be no transaction commissions.

    At Blockwork’s Permissionless event in West Palm Beach, Florida, on Tuesday, Vlad Tenev, co-founder and CEO of Robinhood, said the goal was to simplify the sometimes “clunky” and “cumbersome” architecture found in decentralized banking, Web3, and non-custodial wallets.

    Tenev stated before showing a live audience a promotional film for Robinhood’s wallet.

    Robinhood on a leap to success

    The move is a huge step forward for Robinhood, which previously only permitted customers to buy and hold crypto assets within their trading accounts. In February 2021, the app expressed interest in allowing transfers outside of its platform due to the growing popularity of cryptocurrency.

    Robinhood eventually gave in to public pressure and created a beta version of its first digital wallet, which was first available to 1,000 clients in January. Following a long backlog, that number has risen to two million users.

    Bitcoin, bitcoin cash, bitcoin SV, dogecoin, ether, ether classic, and litecoin are the only assets supported by that wallet at the moment.

    “At Robinhood, we believe that cryptocurrency is more than just an asset class,” Tenev said in a statement. “With our web3 wallet, everyone will be able to hold their own keys and use all the benefits that the open financial system offers.”

    The hype about the Robinhood crypto wallet

    While Tenev’s remark makes it plain that Robinhood’s stance on cryptocurrency has shifted in recent years, no explanation for its two-pronged crypto wallet strategy was provided. The app’s latest Web3 wallet will be offered to select clients on a waitlist who will join its Beta program early this summer, similar to the original run of its crypto wallet. Robinhood also said it plans to make the product generally available to all of its customers by year’s end.

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