Robinhood Might Consider Formal Banking Services
Several reports have indicated about the intention of Robinhood, a platform for cryptocurrency, stocks and options trading, to offer bank services like a savings account and other bank-like products. The talks are considered confidential for now and are not meant to be disclosed as nothing is confirmed yet.
In case the reports turn out to be true, it would mean the entry of Robinhood in a completely different and unique space as Robinhood offers products with fees close to almost zero. It is reported that the company is in constructive talks with the Office of the Comptroller of the Currency.
Robinhood is a U.S.-based financial services company headquartered in Palo Alto, California that offers free trading brokerage services. Cryptocurrency trading is offered through an account with Robinhood Crypto.
The company is experiencing a great time. In January this year, Robinhood announced the integration of Bitcoin (BTC) and ethereum (ETH) to its platform and the news was followed by one million sign-ups. In March, there was an increase in the valuation of the company to $5.6 billion after three years of operations. Later, Mid May saw an expansion when the number of US States using the services increased to ten indicating growth of services.
The possibilities of Robinhood becoming a full-fledged bank might embrace some changes in the banking sector. The success of its operations experienced in the past might have encouraged the firm to develop more innovative projects. The company has increased its number of consumers to millions. A broader change in the financial services industry might be demonstrated if the said innovation is implemented.
However, considering the legislative environment in the United States, the free crypto trading app might not be able to make the desired changes without the support of the regulators of the country. For the project to develop, collaboration with existing businesses might be required. People are curious for further updates and for an official statement regarding the news of Robinhood offering formal banking services.
Follow us on Telegram!