Robinhood announced on Tuesday that it is releasing a noncustodial cryptocurrency wallet in a standalone app. The app and wallet will allow investors to store and hold NFTs, as well as exchange and trade cryptocurrencies without network fees.
According to Robinhood, in addition to having no network fees, the wallet will allow investors to earn returns on their assets. The new app will provide a similar experience to Robinhood’s current app, only investors will now hold their own wallet key and will be able to access decentralized apps where they can trade and trade cryptos. The app will also allow investors to connect to NFT markets.
Perhaps the most notable feature is the lack of network charges. Cryptocurrency networks, such as Solana, Ethereum, or Avalanche, all charge fees when sending or receiving cryptocurrency on their respective networks.
Network fees can range from exorbitant to minor, depending on the volume of network transactions. Ethereum, for example, is somewhat notorious for having substantial gas fees – the cost of validating transactions on the ETH network. So getting Robinhood to cover those fees for investors could be a huge boon. However, the company has yet to announce which cryptocurrency networks the wallet will support.
Currently, Robinhood investors can buy cryptocurrency through the Robinhood app, but the assets are owned by the company. The new non-custodial wallet will put investors back in control by literally handing them the key to their individual wallets. Wallet keys are unique 64-digit codes used to access crypto wallets that cannot be recovered if lost.
The wallet is a hot wallet, which means it is a web-based mobile wallet, as opposed to a cold wallet. Cold wallets are physical devices that must be connected to a computer and accessed using a PIN, making them a safer choice for holding digital assets.
“By delivering the same low cost and design that people have come to expect from Robinhood, our Web3 Wallet will make it easier for everyone to hold their own keys and take advantage of all the opportunities the open financial system has to offer,” Vlad Tenev , co-founder and CEO of Robinhood, said in the company’s blog.
Interested investors can join the waiting list. The company said beta invites will be sent out later this summer, with the product being made available to everyone else by the end of the year.