Robinhood to Facilitate Crypto Deposits & Withdrawals
Robinhood trading platform, which had been a subject of controversy in recent times, has stated that it plans to facilitate cryptocurrency deposits and withdrawals.
Currently, the trading platform enables clients to buy and sell cryptos, but does not provide access to the holdings or permit transfer to other wallets.
As per a series of tweet made by Robinhood, the broking firm is doing necessary work to pave way for crypto transfer facilities, although no specific date was provided for the facility to go live.
Robinhood further detailed that their own wallets would be used for custodial of cryptocurrency deposits. Additionally, the company clarified that it does not invest in cryptos and will not utilize customers’ holdings for their own profits.
Currently, Robinhood platform supports buying and selling of seven cryptos namely Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), Litecoin (LTC), Ethereum Classic (ETC), Bitcoin Cash (BCH) and Bitcoin SV (BSV). The company did not specify whether it will start facilitating transfer of some or all of the cryptos.
So much interest in Crypto! To be crystal clear 🔍, we fully intend to provide the ability to deposit and withdraw cryptocurrencies, including DOGE. Robinhood Crypto does NOT currently invest in cryptocurrency or use any customer cryptocurrency for our own benefit.
— Robinhood (@RobinhoodApp) February 17, 2021
It can be remembered that on January 29, the firm blocked instant fiat deposit facility as an outcome of social media platform sparked speculation, pointing to “extraordinary market conditions.” Both regulators and customers of the firm were cynical about the company’s decision to block trading in specific securities listed on its platform. On February 4, Robinhood once again started allowing instant deposits for crypto buying.
How can people trust you again??!!! Could you please give some good argument? People should go to @investvoyager instead
— Crypto_YOLO (@crypto_yolo_) February 17, 2021
Can we get access to our individual wallets and crypto keys?
— Jake (@Revolution_pt2) February 17, 2021
The plan to widen crypto related facilities has come at a time when the lack of trust on centralized service providers in increasing. A large number of traders do not believe that the initiative of Robinhood will assist in regaining trust of clients. Several crypto enthusiasts have questioned the process of deposit and withdrawal, particularly because it is linked to clients’ access to private keys.