Robinhood has announced that it has listed the market’s second-largest stablecoin, USDC, on its trading platform.
Robinhood’s First Stablecoin
Earlier today, Robinhood announced that it had adopted the first stablecoin into its trading platform – USD Coin (USDC). As a result, Robinhood users will be able to trade the stablecoin or hold on to it on the aforementioned trading platform.
Robinhood is quite popular as a brokerage app, allowing investors to dabble in both stocks and crypto. The trading platform started operating in 2018 and has since amassed 17 other cryptocurrencies. However, USDC will be the first stablecoin to be added to the Robinhood roster.
Refocusing The Business Model
The move to include a stablecoin in their listings indicates that the company is refocusing its business model toward crypto trading. Indeed, during a recent earnings meeting, the company’s head of investor relations, Chris Koegel, spoke about the business’s three main focuses: crypto trading, brokerage, and money services.
Koegel had said,
“Our vision with crypto is to be the most trusted platform for customers to invest in crypto as well as the most trusted on-ramp to the decentralized web. Customers tell us that they want us to introduce more coins onto the platform.”
The company’s leadership and management are yet to address the decision of listing USDC into its folds; however, a spokesperson claimed that the company’s CTO and GM, Johann Kerbrat, will speak on the matter at the upcoming Circle’s Converge22 conference being held in San Fransisco.
Other Exchanges Have Been Delisting USDC
The move to include the USDC stablecoin is interesting, especially if viewed in the context of the recent decisions taken by exchanges like Binance and WazirX regarding the same stablecoin. Binance, which is the world’s largest crypto exchange by volume, recently delisted USDC along with two other stablecoins, USDP and TUSD, from the platform’s spot trading pairs. The exchange explained that the move was informed by the desire to enhance liquidity and capital efficiency for the users. As per the announcement from Binance, all three stablecoins would be converted to the Binance USD coin (BUSD) on September 29 at a 1:1 ratio.
Soon after, another crypto exchange, WazirX announced its plans to take similar steps and delist USDC from its own platform. The exchange, which is the largest crypto platform in India, also cited similar reasons of liquidity and capital efficiency behind the decision, in which a BUSD auto-conversion would be implemented following the same 1:1 ratio.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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