Robinhood App Tests Its Crypto Wallet Features

Bloomberg News reported a few days ago that Robinhood Markets is making a long-awaited move as it is testing a crypto wallet feature for its app which would allow its customers to send and receive digital currencies.

The company's team is very much at work as evidence appeared in the software beta version of its Apple-owned iPhone app in the form of a hidden image portraying a waitlist page for users to sign up for the feature, with the app having a code for cryptocurrency transfers as it's already possible for Robinhood customers to buy and sell popular cryptocurrencies, including Ethereum and Dogecoin along with bitcoin.

However, this time, they will be able to manage all of their crypto holdings through a wallet in the app, without converting them into dollars. Its industry peers such as Coinbase Global already offer their own crypto wallets which offer a single place for customers to store all virtual currencies which are protected by a private key.

On the latest earnings call, CEO Vlad Tenev already mentioned that this feature is a priority for the company's developers. However, being able to deposit and withdraw cryptocurrencies on a large scale is complex the company wants to make sure the process is done correctly.

He didn't disclose any dates regarding the launch, but the support and testing in its app suggest a debut could be in the near future.

During the quarter that ended in June, revenue more than doubled to $565 million due to a massive surge in crypto trading. They surged more than 131 percent in the period from US$ 244 million a year ago.

Crypto trading alone brought US$ 233 million to the revenue table which is more than half of all the transaction-based revenue of US$ 451 million. Cryptocurrency's share of revenue jumped from the first quarter's 17 percent to more than 51 percent.

Unfortunately, the bottom line was a net loss of US$ 502 million, or US$ 2.16 per share. Costs that arose from the change in fair value of convertible notes and warrant liability took out US$ 528 million from equation whose end result was significantly different compared to a profit in the same quarter last year.