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Robinhood wants to offer lower cost than Coinbase, says CEO

Updated: Jul 25, 2024
Published: Mar 19, 2021
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Robinhood wants to compete with the likes of Coinbase in the cryptocurrency space and intends to offer clients lower transaction costs. The move would allow Robinhood to expand its presence in the cryptocurrency space.

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Robinhood to expand its crypto trading platform

Robinhood CEO Vlad Tenev had an interview with Bloomberg yesterday to discuss some of the company’s moves. According to the CEO, Robinhood has huge plans to expand its cryptocurrency services. The online brokerage firm is working on a wallet feature but wants to ensure that it is safe before introducing it.

Tenev stated that “As much as people are bugging me on that on social media, I’m bugging our crypto team and our software engineers. We’re going to try and get that done as fast as possible. And we’ll see. We might add some new coins along the way.”

Although Robinhood will have numerous users on its platform, it wants to focus on making sure it can scale the service to handle more customers that would join.  Tenev stated that Robinhood is doing a poor job informing the customers how cost-effective their cryptocurrency offering is. “If you trade on Coinbase, or some of these other, kind of smaller outfits, you’re paying 1%, 2%, even more,” he added.

Robinhood is a popular platform for trading stocks and a wide range of other investment vehicles. However, it is still unpopular in the cryptocurrency space.

Robinhood still suffering from the GameStop saga

Tenev revealed that the company is still suffering from the GameStop saga, and it would take a few months before it recovers from the reputational hit it took earlier this year. The platform restricted users from buying the GameStop stocks at the height of the Reddit-fueled frenzy of meme stock trading and the move affected its reputation.

“We’re doing as much as we can to get the true story out there. I think there is going to be some documentaries and some movies that will help blast it out to a wider audience,” Tenev concluded. It would be interesting to see how the market reacts if or when Robinhood decides to release its version of the story.

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