🔥 BitDegree partnered with Ogvio - a free international money transfer service! Join the waitlist & grab Rewards! 🎁

Robinhood Pauses on Adding Cryptocurrencies to Reserves

Key Takeaways

  • ​Robinhood has not yet decided whether to invest in cryptocurrencies like Bitcoin as part of its corporate holdings;
  • While holding crypto could show support for its users, Robinhood is weighing the impact on capital and shareholder value;
  • The company prefers to let users choose their own crypto investments rather than making that choice on their behalf.

Stop overpaying - start transferring money with Ogvio. Join the waitlist & grab early Rewards NOW! 🎁

Robinhood Pauses on Adding Cryptocurrencies to Reserves

Robinhood has not made a decision yet on whether it will add cryptocurrencies like Bitcoin BTC $101,266.53 to its company holdings.

Shiv Verma, who leads finance and strategy at Robinhood, spoke on the topic during the company's third-quarter earnings call.

When asked if Robinhood plans to hold crypto as part of its own investments, Verma explained that the team has had many internal discussions.

What is an NFT? (Explained with Animations)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

The company understands that holding crypto could show support for its large base of crypto-focused users. However, that alone is not enough to make a final decision.

Verma noted that while supporting the crypto community is important, any decision has to also make sense for shareholders. Placing digital assets on the company’s balance sheet could signal alignment with its users.

Still, it would also require tying up capital that could be used for other business needs.

According to Verma, that capital might be better spent on new product development, hiring in engineering, or expanding the company’s services. He questioned whether holding Bitcoin would be the most efficient use of company resources, especially when Robinhood customers already have the option to buy crypto on the platform.

He added that the company does not want to make investment choices for its users when they are free to do that on their own.

Kraken $575.01M has taken a step to grow its US derivatives business by acquiring Small Exchange, a US-regulated futures market. What did co-CEO Arjun Sethi say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

Loading...
binance
×
Verified

GET EARLY REWARDS

Join Ogvio Waitlist
Rating
5.0