Commission-free crypto brokerage Robinhood has addressed the speculations surrounding its potential stablecoin launch amid broader fintech trend.Â
Robinhood Markets Inc. is deepening its foothold in the digital currency ecosystem. Many in the industry expect the firm to launch a new stablecoin soon. Speaking with the Thinking Crypto Podcast, Johann Kerbrat, Robinhood’s Crypto General Manager, shared insights into the company’s stablecoin plans.Â
Robinhood and Stablecoin Launch: The Reality
Stablecoins are considered the livewire of the crypto ecosystem, serving as a bridge for transactions. They are increasingly becoming popular, with a combined capitalization of $171.213 billion. These assets’ size and relevance have made speculation stronger in recent times.
While acknowledging the importance of stablecoins in the broader crypto world, Kerbrat confirmed that Robinhood has yet to announce a launch. He reiterated that the company has an extensive partnership with USDC through which users can buy stablecoins.
He claimed the USDC token is resident on different blockchains, making it a tailored option for investors looking for related token payment services. Over the past few months, Robinhood has expanded its reach in the digital currency ecosystem. In line with this push, the brokerage firm unveiled its listing of Shiba Inu for New York residents.
Its crypto business has proven profitable after reporting a 220% jump in trading volume in the month’s first quarter. With this boom, a stablecoin pursuit might be reasonable; however, with a Wells Notice from the SEC, the firm is acting more cautious in its business dealings.
Matching With Competitors
As mentioned earlier, most of the top fintech-based firms in the United States are pivoting toward stablecoin launches. One such firm is Paypal, which launched the PYUSD token last year.
Ripple Labs Inc. also plans to launch the RLUSD token later this year. As a dominant payments firm, many consider this proposed stablecoin the right move in the company’s evolution.
The firm has started testing this stablecoin product, and it plans to launch it on both the XRP Ledger and Ethereum networks.
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