Robinhood is expanding its cryptocurrency services. The trading platform is introducing staking for Ethereum and Solana in New York beginning Tuesday, according to the company, enabling users to generate returns on digital assets.
TL;DR
- Robinhood now offers Ethereum and Solana staking in New York, allowing users to earn returns on digital assets.
- The company plans to expand its staking services nationwide and internationally, including futures agreements in Europe.
- Robinhood acquired Bitstamp and aims to compete globally with platforms like Coinbase and Binance through enhanced crypto offerings.
- BlackRock also recently filed for an Ethereum ETF that includes staking features, indicating industry-wide interest.
The company will let customers stake in New York and plans to expand across the country. “We’re proud of the momentum we’ve seen with staking and especially excited that staking is now available to customers in New York, which has one of the most rigorous regulatory frameworks in the country,” wrote Johann Kerbrat, senior vice president and general manager of Robinhood Crypto, in a note to Coins2Day.
For close to ten years, staking has been a feature of the cryptocurrency world, providing returns to individuals who secure a quantity of digital assets to aid in the functioning of a blockchain system. However, ambiguity regarding its regulatory standing has resulted in it primarily being utilized by seasoned crypto participants through their personal digital wallets.
In 2023, the platform Kraken consented to pay $30 million to resolve claims that it violated the Securities and Exchange Commission’s regulations by providing staking services. Robinhood's introduction of crypto stakes mirrors a more relaxed regulatory climate during President Donald Trump’s tenure.
“These crypto enhancements are strategic chess moves positioning Robinhood for the anticipated transformation of financial infrastructure through blockchain technology and tokenization—particularly with the regulatory clarity we expect under the current administration,” said Caydee Blankenship, senior equity research analyst at CFRA Research.
Robinhood has also declared an initiative to expand into international cryptocurrency trading. Within Europe, the company plans to introduce ongoing futures agreements for various digital currencies. Furthermore, Robinhood intends to establish a presence in Indonesia, having reached an agreement to acquire a local brokerage and crypto service.
Robinhood possesses prior experience with cryptocurrency, given that individuals on its service have had the ability to exchange Bitcoin and Ethereum starting in 2018. Nevertheless, the firm has significantly enhanced its cryptocurrency division throughout this year. In June, Robinhood finalized its acquisition of $200 million acquisition of Bitstamp, recognized as the globe's most established crypto exchange. As of the most recent earnings statement, cryptocurrency exchanges represented over 21% of the firm's income.
William O’Neil research analyst Romeo Alvarez suggested that Robinhood's increased digital asset offerings might enable it to compete with other cryptocurrency platforms. “Robinhood is stepping up its efforts to compete on a global basis with larger trading platforms like Coinbase, Binance, OKX, and Kraken,” he commented.
In recent days, other major financial institutions have competed for investment opportunities. On Friday, BlackRock submitted an application for An Ethereum ETF that includes staking, named the iShares Ethereum Staking Trust (ETHB). This prominent Wall Street firm already offers an Ethereum ETF (ETHA), but that particular fund does not incorporate staking features.
