The stock and crypto trading platform Robinhood has decided to expand their services as well, applying for a bank charter with United States regulators, based on reports from S&P Global Market Intelligence on April 19th. Robinhood believes that the approval for the banking charter would be one of the preceding steps in allowing the platform to provide traditional banking services and products as well.
Based on statistics last years, Robinhood was the home to five million users that use crypto trading on the platform.
In December, Robinhood had to pull back on their attempt to offer checking and savings services to the customers in the United States.
Robinhood ultimately revealed that the only time that they guaranteed funds was in the purchase of securities.
When Robinhood decided to change their service to be “Cash management,” there was a lot of criticism for their rebranding and the removal of deposit protection.
Robinhood reportedly will soon offer an initial public offering for their $5.6 billion platform, which recently received this valuation after an investment round last year.
This valuation makes Robinhood the second-most valuable startup in the fintech industry of the United States.