Securities trading app Robinhood (NASDAQ: HOOD) is piloting the addition of cryptocurrency wallets for a limited number of users, with a full release expected by 2022.
The integration of wallet features into Robinhood will help the popular app "catch up" to rivals such as Coinbase (NASDAQ: COIN), which have boasted in-app crypto wallets and trading for some time. While Robinhood users have been capable of buying and selling cryptocurrencies through the app previously, the addition of wallets will allow users to store any purchased assets within the app.
Additionally, users will be able to trade currencies between wallets and set up recurring, commission-free purchases to build a portfolio steadily, according to the company's blog post. The move should also allow users to freely convert currencies within the app, akin to rivals like Coinbase.
The move is reasonably promising for Robinhood and could draw more attention from existing users and potentially attract aspiring crypto-traders. The potential to attract new traders seems even more likely as of late, given the ongoing surge of interest in securities and crypto assets by casual retail investors (something that Robinhood investors seem to be aware of, given the company's recent share surge).
However, the forthcoming pilot release, which will allow a limited number of users (who have signed up to the company's waitlist through the app) to test the new feature, comes amid wider disruptions to the crypto market. Alongside ongoing economic troubles from the coronavirus pandemic, the looming potential for a default on the titanic debt of the Evergrande Group (OTC: EGRNF) has driven many cryptocurrencies down over the past week.
As previously mentioned, Robinhood's investors seem to have noticed the potential that wallet integration poses, driving shares up 9% on Wednesday. Shares were down slightly as trading got underway on Thursday, dipping down 0.79% by 11:30 AM.