Crypto analytics platform Arkham Intelligence has identified financial services company and crypto trading platform Robinhood as the owner of the fifth-largest Ethereum (ETH) wallet, which holds approximately $2.54 billion worth of the cryptocurrency.
In addition to its ETH holdings, Arkham Intelligence revealed that a wallet associated with Robinhood also holds significant amounts of other cryptocurrencies. These include 122,076 Bitcoin (BTC) worth $3.3 billion, 34.1 trillion Shiba Inu (SHIB) valued at $277.8 million, 4.9 million Chainlink (LINK) tokens worth $29.7 million, and 2.6 million Avalanche (AVAX) tokens valued at $29.6 million. These findings have received less attention compared to their previous announcement that Robinhood possessed the third-largest Bitcoin wallet.
It is important to note that these funds held by Robinhood are user balances under custody, indicating that the company is holding these cryptocurrencies on behalf of its users.
According to BitInfoCharts, the largest Bitcoin wallets in the world are reportedly owned by Binance and Bitfinex. However, Robinhood’s significant holdings in both Bitcoin and Ethereum position it as a major player in the cryptocurrency space.
Despite its prominence in stock trading, Robinhood’s crypto trading activity has experienced a decline. In the second quarter, the company’s crypto revenue dropped to $31 million from $38 million in the first quarter. This decline may be attributed to various factors, including market volatility and changing investor sentiment.
To address user demands for broader support, Robinhood recently announced the expansion of its wallet product. The company’s wallet now offers custodial, sending, and receiving capabilities for Bitcoin and Dogecoin, in addition to the existing feature of facilitating Ethereum swaps.
Robinhood Wallet initially launched in March, offering self-custody services for the Polygon and Ethereum networks. The wallet also supported various tokens, including Compound (COMP), Polygon (MATIC), Shiba Inu (SHIB), Solana (SOL), Uniswap (UNI), and the US Dollar Coin (USDC) stablecoin.
Robinhood’s accumulation of significant amounts of Bitcoin and Ethereum over the past few months raises questions about its future plans and strategies in the crypto market. With its expanding wallet product and diverse crypto holdings, Robinhood aims to meet the growing demands of its user base and capitalize on the increasing popularity and adoption of cryptocurrencies.
As the cryptocurrency industry continues to evolve, the actions and positions of major players like Robinhood will play a crucial role in shaping the future of digital assets and their integration into traditional financial systems.
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