Robinhood App has Raised 363 Mln Dollars to Expand its Crypto Trading Platform
Zero-fee crypto trading platform
Robinhood stock trading app has raised 363 million dollars in a series D funding round for them to expand their crypto trading platform called Robinhood Crypto. This recent funding has made Robinhood the second most valuable startup in the United States with a current valuation of 5.6 billion dollars. This is more than four times increase from their last year valuation.
In this latest funding round, DST Global led the funding with new investors like Kleiner Perkins, Sequoia Capital, capital G and Iconiq Capital all taking part. The service is growing very fast, and as at now, over 4 million have already opened brokerage accounts which have been offering a cryptocurrency-specific platform and is currently available in 10 U.S States.
Robinhood co-CEO Baiju Bhatt said that the company was planning to trade in 16 different digital currencies which would include Bitcoin, Ripple, Ethereum, Bitcoin Cash, Zcash among others by offering a more favorable cost structure with no commissions. Bhatt added that Robinhood was already a registered broker with the Securities and Exchange Commission making them different unlike so exchanges like Coinbase. Coinbase has more than 20 million users despite the fact that they offer only four digital currencies.
Putting into place Robinhood’s aspirations and the rivalry with other existing exchanges they will have to contend with major Wall Street players who are planning to enter the Bitcoin trading market. Banking Giant Goldman Sachs has already announced that it will open a cryptocurrency trading desk in a few weeks’ time. More to the New York Stock Exchange’s parent company ICE is already venturing into Bitcoin trading by offeringBitcoin swap contracts which will be settled in Bitcoin.
We also expect many other Wall Street players to join the growing cryptocurrency market. The entrance of this of these institutions is very important for the growth of the cryptocurrency sector.