Robinhood receives funds for heavy expansion into cryptocurrency trading platform
The popular free to use, free to trade company known as Robinhood has announced a successful round of Series D funding for their plans to expand their cryptocurrency trading platform by raising a whopping $363M in working capital.
Robinhood was founded in 2013 and has become one of the most widely used trading exchanges in the world. Starting out in the stock market, Robinhood now wants to focus their efforts on a serious expansion in the cryptocurrency market.
Currently, Robinhood’s cryptocurrency platform is only available in ten U.S. states. Robinhood Co-Founder and Co-CEO, Baiju Bhatt, wants to extend their platform to all fifty U.S. states by Q4 of 2018.
The funds raised will be used to acquire new experienced staff, acquire legal trading licenses and expand on current operations and infrastructure. The current CEOs of Robinhood said in an interview with Fortune, “It’s our goal for the company to become the world’s largest, or one of the largest cryptocurrency exchanges by the end of 2018.”
One appealing quality that Robinhood has to offer is their zero fee trading policy. The ability to trade for free has paid off for the company as millions of investors have downloaded Robinhood’s mobile trading app and the application has become the dominant trading platform among millennial investors.
From the $363M they received from venture capital firms, one worth noting was Google’s own Capital G, a venture capital group owned by Alphabet Inc. This happens to be the second time Alphabet has invested in the firm with the first investment being a $16M investment when Robinhood first launched their app. Now with the funding completed, Robinhood estimates their company at $5.6B in valuation.
Do you think Robinhood will surpass the likes of Coinbase and Binance? Let’s hear some feedback from you!