Robinhood Expands Cryptocurrency Trading App to Utah

Utah joins a handful of states that were added over the last two months as ‎part of a phased market

Commission-free investing app Robinhood today expanded its ‎cryptocurrency service to another American state, this time bringing the derivative product for its clients in Utah. ‎

Robinhood’s offering is particularly popular among the “millennial” population, who ‎appreciate the ease of using the app to trade several asset classes without fees. As for the ‎crypto offering, the platform offers no-fee Bitcoin and Ethereum trading services.‎

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

Utah joins a handful of states that were added over the last two months as part of a phased market rollout that is moving along. Just this month, Robinhood became available in two ‎cryptocurrency-friendly states: New Mexico and Wisconsin. ‎

Robinhood Crypto got off to a good start in late February for ‎residents in five states ‎‎– California, Massachusetts, Missouri, ‎Montana, and New Hampshire.‎

The announcement has triggered a flurry of responses on Robinhood’s ‎Twitter account, ranging from requests to add more cryptocurrencies to ‎asking the company to expand to other states.‎

Robinhood seeks to carve out its niche by letting traders ‎buy and sell ‎cryptocurrency for $0 a trade. In doing so, the ‎company plans to make ‎money from order flows, a ‎common tactic used by discount brokers to ‎generate ‎revenue by directing orders to certain trading venues. The ‎company also receives interest on unused cash deposits ‎from user accounts and offers a ‎premium paid account for ‎‎$10 per month, which gives users added features.‎

The six-year-old startup has been growing at an explosive ‎rate. For now, Robinhood can keep its free platform ‎afloat through compromises such as not having many physical ‎locations, maintaining only a small staff ‎for client service, ‎and not spending on massive promotional campaigns. ‎

Last week, Robinhood raised its latest round of funding, ‎bringing in $363 million at a $5.6 billion valuation. ‎

The Silicon Valley company said that it would use the ‎funds to increase hiring and develop new products around ‎its stock trading app, which has more than 4 million users. ‎

Got a news tip? Let Us Know