An announcement from Robinhood Markets conveyed the beginning of the new service named “Robinhood Connect”. It is a part of multiple other updates that will soon arrive in the app. It is an on-ramp for converting from fiat to crypto that also supports DApps (decentralized applications) as well as wallets for self-custody. The announcement was made on April 27th during Consensus 2023.
Robinhood’s Newest Venture – Robinhood Connect
The new service from Robinhood is meant to compete with similar services like MoonPay and Coinbase Pay. Essentially, the service will let users sell as well as purchase cryptocurrency directly from and to their wallets held under self-custody. They can also do the same thing natively in DApps via debit or credit cards.
Robinhood Connect will feature Web3 project integration. Through it, developers will be able to embed this service into applications directly. This will further give customers access to their credentials for Robinhood natively inside DApps without any need for opening the app or website of the crypto separately and logging in before being able to conduct transactions.
For now, the service will only be accessible for three ecosystems: Slingshot, Giddy, and MyDoge. However, future support for Phantom and Exodus has already been announced. Robinhood Crypto’s general manager. Johann Kerbat put out an explanation via a blog post about the company. He said the latest service hopes and intends to get more people involved with the space for cryptocurrency.
Robinhood Connect’s market, that is, services offering fiat-crypto conversions, is not very crowded. However, with this, Robinhood will belong to a very small number of traditional finance-associated companies to venture into the space. As of the beginning of the year, Robinhood says that their user accounts number 23 million. As for their custodial assets, it is claimed to be $74.7Bn.
