More Than 1 Million People Are on the Waitlist for Robinhood's Crypto Wallet

Why are so many people interested in signing up?

Robinhood is one of a few brokerage firms that allows cryptocurrency investing. The app's users can gain crypto exposure through Robinhood Crypto, LLC -- and trading in cryptocurrencies accounts for a large portion of the brokerage firm's revenue.

Because so many of Robinhood's investors are interested in virtual coins, it's not surprising that the company is expanding its crypto offerings. Specifically, Robinhood has announced that it plans to test a cryptocurrency wallet.

Following its announcement, the brokerage firm's users made it clear they want to take part. According to Robinhood's CEO Vlad Tenev, over a million customers have joined the waiting list to become eligible for a cryptocurrency wallet.

Cryptocurrency wallets present new opportunities for Robinhood users

Users are interested in a crypto wallet on Robinhood because of the additional features it will bring to the trading platform.

Many users have complained that while they can gain exposure to fluctuations in crypto prices by trading cryptocurrencies through Robinhood, they can't directly own the coins themselves within their Robinhood accounts.

Once rolled out, the cryptocurrency wallet will change that. Robinhood's wallet will let users buy and sell coins, send and receive cryptocurrencies, and move coins in and out of the app.

"You can have a wallet, you can send people cryptocurrencies from that wallet to their wallet," said Tenev. "There's certain advantages that are in the technology that make it kind of global and accessible by default and that makes it very interesting."

The wallets will also contain safeguards including multifactor authentication and other identity protection tools to help ensure virtual coins are safe from being hacked.

Currently, Robinhood lets users trade several digital coins using its app. These include Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). However, unlike some other crypto apps and exchanges, such as Gemini and Coinbase, Robinhood historically hasn't offered cryptocurrency wallets.

When this changes and the new feature becomes widely available, users will be able to consolidate their cryptocurrencies into a single wallet with Robinhood. This crypto wallet can be part of the same ecosystem where they invest other assets, such as stocks and bonds. Users won't have to sign up for an entirely separate service just to be able to maintain a crypto wallet.

"We're very proud of our cryptocurrency platform and giving people more utility with the coins they have," Tenev said, acknowledging that many people have been clamoring for the features the forthcoming wallet should provide.

Robinhood's crypto wallets will first roll out in a beta version for testing, so it's possible not all of the million people who have signed up will gain access immediately. Still, the development of this new technology is a sure sign Robinhood is serious about helping its users indulge their interest in cryptocurrency investments as easily as possible.