Robinhood adds to the encryption business, looking at lending and pledge services
This article comes fromDecrypt, original author: Ekin Genç
Odaily Translator | Nian Yin Si Tang
Summary:
This article comes from
, original author: Ekin Genç
Odaily Translator | Nian Yin Si Tang
secondary title
Summary:- Robinhood held a roadshow ahead of its July 29 IPO.- The company says it is investing in crypto lending, staking and wallet services.
American online brokerage Robinhood may soon allow customers to take out loans and collateralize cryptocurrencies, in addition to its previously announced crypto wallet.In a roadshow that aired online, Robinhood Chief Financial Officer Jason Warnick said the company is "investing heavily in services that we know customers want, like wallets, loans, and mortgages." He added, "We think there's a Great opportunity, and we look forward to bringing more products to our customers."Menlo Park-based Robinhood currently allows customers to buy and sell cryptocurrencies, but traders cannot earn interest on their holdings or transfer them to external wallets. Robinhood said in March that it would "as soon as possible"
Launch a crypto wallet
Earlier this month, a person familiar with RobinhooddiscloseTell Decrypt
, the company’s crypto wallet will interface with decentralized finance (DeFi) protocols. This would explain Warnick's reference to loan servicing, which is very popular among DeFi protocols.
The eight-year-old company will list on Nasdaq on Thursday (July 29) via an IPO under the ticker symbol HOOD, with shares expected to trade around $40.Last week, Robinhood Markets Inc said in a filingdisclose
, which is targeting a valuation of up to $35 billion in its U.S. initial public offering (IPO). About 55 million shares will be offered in the IPO to raise more than $2.3 billion. Nearly 2.63 million of those shares were issued by the company's founder and chief financial officer, the filing shows. These proceeds will not go to Robinhood. The company said it expected shares to trade between $38 and $42. Goldman Sachs and JPMorgan are the lead underwriters for the offering.To pitch an IPO to potential investors, companies often hold roadshows and meet deep-pocketed investors through backdoor meetings. Institutional investors typically buy the stock at a lower price and sell it to investors when the IPO launches.。
Robinhood, however, let clients buy up a large chunk of its first-day IPO, putting them on par with institutional investors. That's why it chose to hold a road show live and let executives answer their questions on the spot.
18 million customersany questions.The move is similar to Robinhood's rival in the crypto space, Coinbase. Coinbase went public via a direct listing in April, and unusuallyA roadshow was held on Reddit。
