Robinhood, the stock and crypto trading platform, has introduced a new service called “Robinhood Connect” that enables crypto investors to buy and withdraw cryptocurrency directly to self-custody using a credit card. The service is currently available on personal wallets like MyDoge and Slingshot and will soon launch on Phantom and Exodus. This fiat-to-crypto on-ramp will compete with similar services like MoonPay and Coinbase Pay, but it comes from a company that is more closely linked to traditional finance.
- Users will not need to open the Robinhood app to fund their wallet with the integration, as they can buy cryptocurrency directly within their wallet app. However, existing Robinhood account holders can also fund their wallets with just a few clicks.
- Robinhood has recently launched several crypto-related products, including its own self-custody wallet on IOS in March, which has received over 100,000 downloads. At Consensus 2023, a representative for the company noted that the backlash from FTX has actually helped Robinhood in some ways, stating that they have seen a “flight to safety” and believe crypto will become the “next operating system for finance.”
- Former FTX CEO Sam Bankman-Fried had to forfeit over $400 million of his Robinhood shares as part of the exchange’s bankruptcy proceedings in January.