Wallet Sees Robinhood Challenge Coinbase and MetaMask

Robinhood has started rolling out its Wallet app for one million of its waitlisted customers, further crowding the software wallet market.

Robinhood Crypto General Manager Johann Kerbrat announced the launch of Robinhood Wallet in a thread on Twitter. Customers that had signed up for the waitlist would be receiving codes enabling them access to the application, he explained. The GM added that those who access the app after downloading it would receive a promotion of $5 in crypto.

Based on Beta Feedback

Robinhood had initially conducted a trial starting in Sept. last year, enabling 10,000 customers access to a beta version. The improvements made to the official released version of the Wallet app reflect the customer feedback from the beta trial.

Whereas the beta version only supported crypto and tokens on Polygon, Robinhood Wallet now also supports Ethereum. The app offers support for major cryptos including like Compound (COMP), Polygon (MATIC), and Solana (SOL), in addition to more than 50 ERC tokens. 

Initially, the Robinhood Wallet app will only be available for iOS mobile devices, with support for Android devices expected later in the year. Kerbrat said that Robinhood would be enabling access for waitlisted customers “on a rolling basis over the coming weeks.” While he solicited others to join if they still had not, others related how long they’ve already been waiting. 

Wallet Confusion and Market Diffusion

Some Robinhood users have been confused by the announcement, as its original trading app had a “Crypto Wallet” product. That feature launched in beta in Jan. 2022, and enabled Robinhood users to transfer crypto to and from the platform.

However, the new Robinhood Wallet is a completely standalone app that gives users total control over their crypto. According to Kerbrat, it also provides access to more advanced features, such as connecting to decentralized apps and NFT marketplaces. “This is much more than just a wallet—think of the Robinhood Wallet as a ‘browser’ for Web3,” he said. 

With competitors like MetaMask and Coinbase Wallet, Robinhood Wallet is adding to an increasingly saturated market. Indeed, MetaMask has been seeing growing pressure from emerging browser extension software wallets.

However, Kerbrat acknowledged making improvements on these other products based on feedback from the beta trial. With a growing emphasis on digital identity expected this year, the wallet market is sure to grow even more crowded.