Robinhood Planning for Crypto Deposits and Withdrawals

Sahaj  |  Feb 18, 2021

Robinhood announces its plans to regain its credibility in the crypto community by enabling crypto deposits and withdrawals. The online trading platform made an announcement on Wednesday regarding its intentions to implement crypto deposits and withdrawals for popular cryptocurrencies including DOGE.

Online Brokerage Firm Robinhood Announces Plans

The controversy-loaded online trading firm has made an announcement that the integration of crypto transfers has already started. However, no official dates and details are revealed as of now.

Earlier, the platform users were able to purchase and sell crypto, but coins were inaccessible to them for transferring to other wallets.

Robinhood shared a series of tweets and clarified that the crypto deposits are now going to be custodied by their own wallets, and in addition to this, the company doesn’t use their customers’ funds to invest in cryptocurrency.

At present, a total of seven cryptocurrencies are listed for trade on the Robinhood trading platform and they are, Bitcoin, Ethereum, Bitcoin SV, Bitcoin Cash, Litecoin, Dogecoin, and Ethereum Classic.

However, it hasn't been revealed as of now whether they have any intentions to introduce support for transfers of all the above-mentioned digital assets.

In response to the speculations fueled by social media, Robinhood suspended instant fiat deposits on January 29 and chalked up this decision as a reaction to unsuitable market conditions.  However, the instant deposits were reinstated by February 4 for crypto purchases.

The Efficiency of Plans Involving Crypto Deposits and Withdrawals

At the times of increasing trust issues of centralized service providers, this decision to stretch services related to cryptocurrency is not believed by everyone to help Robinhood regain the credibility they lost due to their recent actions.

Robinhood cleared the cryptocurrency wallet rumors in a tweet, stating:

“Cryptocurrencies purchased and owned by our customers are held in our wallets for the benefit of our customers. Additionally, we only receive coins when our customer’s trades have already settled.”

Experts have expressed doubts particularly about the functioning of this deposit and withdrawal process as it directly establishes a relation of customer access to private keys.

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