Robinhood, the stock trading app for millennials, recently introduced cryptocurrency trading services on its platform to customers in five states – California, Massachusetts, Missouri, Montana, and New Hampshire.
In an interview with CNBC last October, the San Francisco-based company’s co-founder, Vlad Tenev, had discounted the possibility of introducing cryptocurrency trading on its platform.
While announcing plans to launch crypto trading services, Tenev told CNBC that cryptocurrencies had become the “First foray into investing and financial services to a large number of people.”
Robinhood already has four million investors, and new customers attracted to lure of quick profits promised by cryptocurrency traders might diversify into equity trading later.
Similar to its stock trading platform, Robinhood plans to offer zero-commission trading services for cryptocurrency trading.
Even as its volumes have skyrocketed, cryptocurrency trading is plagued by inefficiency and complexity.
Robinhood has simplified stock trading for millennials and newcomers to equity markets.