According to a report on April 19, the Robinhood crypto and stock exchange platform, has applied for a bank charter with United States regulator, S&P Global Market Intelligence.
Robinhood has stated that getting approval from the Office of the Comptroller of the Currency would help them in the process of being able to provide traditional banking products and services.
A full-service bank would also have a mobile version of its app, which would allow users to exchange cryptocurrencies, funds, and stocks from their desktops and phones. Robinhood was estimated to have nearly five million users last year.
In December, Robinhood was obligated to change its services and offer a checkings and savings service to U.S. clients. Customer deposits of up to $250,000 were allegedly insured by the non-profit Securities Investor Protection Corporation, but it was later found out that the company only ensured funds for buying securities, according to the article.
Robinhood was greatly scrutinized after its rebranding to “cash management” and removing mentions regarding deposit guarantees. From a Reuters report, U.S. politicians later made accusations that the company failed to provide full transparency to the 850,000 clients that were interested in using the crypto service.
The company announced last year that it was planning to launch an initial public offering. The company is currently valued at $5.6 billion after an investment round, which makes it the most valuable business from the US fintech startup industry.
Featured Image: American Banker
