Robinhood announces plans to offer crypto deposits and withdrawals

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Robinhood announces plans to offer crypto deposits and withdrawals

The controversy-laden trading platform Robinhood announced on Wednesday that it intends to implement cryptocurrency deposits and withdrawals. While customers have been able to buy and sell cryptocurrency via the platform for some time, they are unable to access the coins themselves to transfer them to other wallets.

According to a series of tweets published from the company’s Twitter account, work on integration of cryptocurrency transfers has already begun, though no dates or specifics were provided on when it will go live.

Robinhood also clarified that crypto deposits would be custodied by their own wallets and added that the company does not invest in cryptocurrency and will not use customer funds for its own benefit.

Robinhood currently has seven cryptocurrencies listed for trade on their platform, including Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), Litecoin (LTC), Ethereum Classic (ETC), Bitcoin Cash (BCH) and Bitcoin SV (BSV). It is unclear if they intend to roll out support for transfers of all seven coins.

On Jan. 29, Robinhood suspended instant fiat deposits in response to social-media-fueled speculation, chalking up the decision as a reaction to “extraordinary market conditions.” The company was already under fire from both customers and regulators after restricting purchases of a select handful of securities offered for trade on its platform. By Feb. 4, Robinhood had reinstated instant deposits for crypto purchases.

The decision to expand cryptocurrency-related services comes at a time of increasing distrust of centralized service providers. Not everyone believes the move to offer crypto deposits and withdrawals will help Robinhood regain credibility lost through its recent actions. Others have questions about how the deposit and withdrawal process will work, specifically as it relates to customer access of private keys.

On Feb. 7, a 30-second NFL Super Bowl commercial aired for Robinhood in which a new slogan for the company was unveiled: “We are all investors.”