It has no doubt been an extremely profiting year for the smartphone trading app Robinhood Markets, Inc. out of Menlo Park, California. According to Bloomberg, the once failing firm is now blooming with success.
The company announced in late January that it would add bitcoin core (BTC) and ether to their platform. This announcement caused 1 million people to sign up. For the first time in three years of operation, it boasted a cool $5.6 billion valuation by March, after its formal February crypto rollout. In mid-may, its services grew from one or two US states to ten.
All hands are pointing at the well-known free crypto trading apps and asking regulators about the possibility of it becoming a full-fledged bank. The company is well able to grow a consumer base that can reach more than 4 million in the United States. It might actually be able to offer savings accounts, which will then be a step towards a broader change in the legacy industry, a change gearing itself toward the next, more tech-savvy, generation.
Banking laws in the US do not actually want Robinhood to go ahead with his idea. Bloomberg insists the company is “in early discussions with regulators to begin offering banking-like products through different licenses or partnerships.” Discussions are between it and “the Office of the Comptroller of the Currency, which charters and regulates all national banks and federal savings associations.”
Everyone on the go for this matter was careful to stress how nothing concrete has been decided. Most are expecting from the company to partner with an already existing institution rather than going alone. Other startups have actually moved along similarly with an eye toward smuggling dissatisfied traditional banking customers who were tired of unfavorable interest rates, and who wanted most or all of their financial assets in one convenient application.