Stock Trading App Robinhood Launches Zero-Fee Cryptocurrency Trading In 5 U.S. States

  • Popularstock trading app Robinhood launched bitcoin and ethereum trading, without any fees.
  • The company also announced a social media-like platform dubbed Robinhood Feed.
  • This puts Robinhood in direct competition with industry giant Coinbase and Square's Cash app.

Popular mobile stock trading app Robinhood has formally launched its new Robinhood Crypto service, that now allows customers in five U.S. states to buy bitcoin and ethereum without paying any fees.

According to an announcement, residents of California, New Hampshire, Massachusetts, Missouri and Montana can now trade the top two cryptocurrencies using the app. Those who aren’t yet able to trade will be able to track those and 14 other cryptocurrencies, including Ripple, Litecoin, Bitcoin Cash, Ethereum Classic, Monero, NEO, and Dogecoin.

Robinhood’s has promoted the service with zero fee trading and is targeting millennials with their ‘Don’t Sleep’ advertisement. Robinhood announced its plans  and hopes to bring cryptocurrencies to a whole new audience. Robinhood’s users are investors who trade traditional products such as exchange-traded funds (ETFs) and stocks.

Merely four days after announcing Robinhood Crypto, the platform saw over 1 million people register to use it. This helped Robinhood reach 4 million users, up from the 3 million it had in November. Its users have already transacted over $100 billion, and saved $1 billion in commission fees.

By offering zero commission trading, the app makes stocks, ETFs, and now cryptocurrencies more accessible. The announcement reads:

“Over the past few weeks, we’ve been overwhelmed by the enthusiasm towards Robinhood Crypto and are excited to contribute to the cryptocurrency community in a meaningful way. (…) With the release of Robinhood Crypto, we’re continuing our mission of making the financial system work for everyone, not just the wealthy.”

Robinhood Crypto

Along with Robinhood Crypto, the company also announced the launch of a new social media-like platform dubbed Robinhood Feed. This new platform allows investors to discuss different cryptocurrencies, cryptocurrency-related news, and what’s going on in the markets in real-time. Robinhood Feed, according to the company’s announcement, is only available to a limited number of users for now.

The move makes Robinhood one of the major financial apps allowing users to easily buy and sell cryptocurrencies, as it is now competing with industry giant Coinbase, which reached over $1 billion in revenue last year, and with Square’s Cash app, which also recently launched commission-free bitcoin trading to US customers.

Overstock Committed to Crypto Even After CEO Patrick Byrne’s Exit

Michael LaVere
  • Overstock said it is "absolutely" committed to crypto in the wake of CEO Patrick Byrne's resignation.
  • Company continues to support its high profile tZERO blockchain project. 

Popularo nline retailer Overstock remains committed to cryptocurrency even after the sudden resignation of its long-time CEO and crypto supporter Patrick Byrne. 

Crypto Supporter Patrick Byrne Resigns

On Aug. 22, Byrne announced he would be resigning his position as CEO following a series of comments made the week before about his involvement in FBI investigations and a romantic relationship with a Russian spy. Shares for Overstock plummeted more than 35% following Byrne’s bizarre comments, but rallied in the aftermath of his resignation. 

Despite making a sudden exit, Byrne had established Overstock as one of the most high-profile companies to support bitcoin and cryptocurrency, a legacy that plans to continue even in his absence. 

Newly appointed interim CEO Jonathan Johnson was asked by Yahoo Finance if the company will retain its focus on crypto and blockchain. 

He said, 

Absolutely, yes. The fledgling blockchain business is doing well.

He continued, 

Our team at Medici Ventures, which is the blockchain-focused business, is still working hard, and those different companies in the Medici family are growing at a nice rate.

Earlier in the month, Overstock reported suffering a 23% decrease in revenue for Q2 2019, despite claiming that the blockchain division was performing well. Overstock operates the notable tZERO platform, which was recently opened to retail investors for trading. In addition, the company announced in July that they would be issuing a digital-equivalent of a dividend for shareholders.