Robinhood to develop a Web3 wallet in order to capitalize on the NFT hype

Robinhood has announced the launch of a new Web3 wallet with enhanced NFT features.


Robinhood to add NFT wallet
Robinhood | Image: Robinhood

Robinhood, a stock trading website, has announced intentions to launch a new digital Web3 wallet that would allow users to store and connect their NFTs to online marketplaces for the first time.


The company said in a news release on Tuesday that its new non-custodial "Robinhood 3" wallet will allow users to keep their own crypto keys, earn yield, and trade or swap crypto, including non-fungible tokens, without paying network fees.


The corporation also stated that there will be no transaction commissions.


Vlad Tenev, co-founder and CEO of Robinhood, said the goal was to simplify the sometimes "clunky" and "cumbersome" architecture found in decentralized banking, Web3, and non-custodial wallets at Blockwork's Permissionless event in West Palm Beach, Florida on Tuesday.


"There has to be a way to combine all of the security and privacy benefits of self-custody with the low-cost simplicity and mobile-first design that you've come to expect from TradFi products," Tenev stated before showing a live audience a promotional film for Robinhood's wallet.


The move is a huge step forward for Robinhood, which previously only permitted customers to buy and hold cryptoassets within their trading accounts.


In February 2021, the app expressed interest in allowing transfers outside of its platform due to the growing popularity of cryptocurrency.


Robinhood eventually gave in to public pressure and created a beta version of their first digital wallet, which was first available to 1,000 clients in January. Following a long backlog, that number has risen to two million users.


Bitcoin, bitcoin cash, bitcoin SV, dogecoin, ether, ether classic, and litecoin are the only assets supported by that wallet at the moment.


"At Robinhood, we believe that cryptocurrency is more than just an asset class," Tenev said in a statement. "With our web3 wallet, everyone will be able to hold their own keys and take use of all the benefits that the open financial system has to offer."


While Tenev's remark makes it plain that Robinhood's stance on cryptocurrency has shifted in recent years, no explanation for the company's two-pronged crypto wallet strategy was provided.


The app's latest Web3 wallet will be offered to select clients on a waitlist who will join its Beta program early this summer, similar to the original run of its crypto wallet.