Robinhood will roll out an integrated crypto wallet in 2022

RobinhoodWednesday announced plans to launch a new wallet for cryptocurrencies likeBitcoin,EtherandLitecoin.

Here’s what we learned.

Why is Robinhood building an integrated crypto wallet?

“In crypto especially, there’s this generational shift going on in how users invest.

That’s something we’ve seen play out over the last six months.

I think crypto is a central part of that.

Robinhood users will still be on the hook for any transaction fees, however.

“We have not added fees to the [wallet] product.

We will be passing on the transfer fees that exist when you move assets on-chain.

But there’s no additional Robinhood fee,” Brown said.

The Robinhood wallets arecustodial, meaning access to your crypto assets will ultimately be held by Robinhood.

This removes the burden of keeping up with your keys, which some users may prefer.

However, your ability to access to your Robinhood wallet depends Robinood’s infrastructure.

Some crypto enthusiasts may feel wary about entrusting the security of their crypto assets to a centralized authority.

“This will be a custodial wallet, or a ‘hosted’ wallet.

The company will have access to your wallet and its contents.

Brown confirmed, “Yes.

When youbuy cryptocurrencyand store it in your Robinhood wallet, Robinhood controls that cryptocurrency.

When you make a purchase on Robinhood, we actually do acquire those coins.

There’s no way that someone else can initiate a transfer to a wallet without your confirmation.

Robinhood also announced that it will add new coins to its platform.

Most of us are aware ofBitcoin.

Robinhood would not provide many details about its criteria for which coins to support and which to ignore.

Brown said, “The world of coins out there is huge – there are thousands of coins.

There’s a little bit of secret in that sauce of what our asset listing framework contains.

Robinhood said the wallet will roll out early next year.

But users will soon be able to add their name to a waitlist to become a beta tester.

“We will be rolling out to a beta group of initial customers in the coming month.