Robinhood Launches Upgraded Wallet Amid Shares Controversy

• Robinhood aims to expand its ecosystem beyond stock brokerage and tap into the growing opportunities in the DeFi and web3 space.
• The wallet supports tokens and NFTs on the Ethereum and Polygon blockchains, with plans to add support for more blockchains in the future.
• The launch of the upgraded wallet comes amid ongoing legal proceedings as the DOJ seized assets and shares of Robinhood.

Robinhood Markets Inc., a popular stock trading app, has officially launched its upgraded mobile wallet app with support for both cryptocurrencies and non-fungible tokens (NFTs). The new wallet will allow users to own and control their decentralized assets, including the ability to swap cryptocurrencies without any network fees.

Handling the Legal Proceedings and DOJ Asset Seizures

Robinhood has officially launched its upgraded mobile wallet app despite ongoing legal proceedings. The United States Department of Justice has notified the court handling the bankruptcy of BlockFi that it had seized assets as part of the criminal cases against crypto exchange FTX and its executives. 

In a January 6th court filing, the Justice Department disclosed the seizure of 55,273,469 Robinhood shares worth more than $450 million, to which former FTX CEO Sam Bankman-Fried, BlockFi, and FTX creditor Yonathan Ben Shimon had previously made claims.

The DOJ further announced that it had taken control of more than $20 million in U.S. currency from the brokerage firm ED&F Man Capital Markets.

Moving Forward Despite Seized Shares

There is speculation that the company has already factored in the seizure of shares into its business plan and determined that the launch of the upgraded wallet would still be a viable move. Additionally, Robinhood’s current user base could provide a boost to its efforts to onboard users to the new wallet. 

With Robinhood already dealing with cryptocurrencies on its platform, it is evident that the company is eying the growing opportunities in the DeFi and web3 space. Robinhood believes that the launch of the upgraded wallet will be a strategic move to continue to expand its ecosystem beyond a stock brokerage and remain competitive in the market.

In the initial announcement of the upgraded wallet in May 2022, the company stated that users would also be able to connect the wallet to NFT marketplaces and decentralized exchange platforms. At the time of writing, the wallet supports tokens and NFTs on the Ethereum and Polygon blockchains, with plans to add support for additional networks in the future.

The latest version of the app, Version 2023.3.1, includes some key improvements and bug fixes, and is compatible with iOS 14.0 or later. The app will be competing with other popular crypto and NFT wallets such as Coinbase, which has seen its crypto custody wallet become the most downloaded wallet in the US.

On the Flipside

• The zero-fee crypto-swapping service offered by the new wallet is a bold move by Robinhood that goes against the traditional business model.
• The new wallet’s support is currently only available for tokens and NFTs on the Ethereum and Polygon blockchains.
• Legal proceedings could potentially impede the further development of the wallet.

Why You Should Care

The launch of Robinhood’s upgraded mobile wallet app with support for both cryptocurrencies and NFTs is significant as it shows the company’s efforts to expand its ecosystem beyond stock brokerage and tap into the growing opportunities in the DeFi and Web3 space. 

The move further highlights the increasing mainstream adoption of digital assets and the growing importance of decentralized finance.

For more information about the seized shares:

BlockFi and FTX Lay Claim to Robinhood Stocks to be Seized by US DOJ

For more information about FTX:
FTX Loses $415 Million Since Filing for Bankruptcy, Bankman-Fried Argues FTX.US Is Solvent