Robinhood Launches Solana Staking Service
15 May, 2024 ● Coin news
Trading platform Robinhood is actively pursuing European markets to expand its cryptocurrency services amid ongoing legal challenges in the United States.
On May 15, Robinhood launched its inaugural crypto-staking product, available exclusively to its European customers.
The new service allows Robinhood customers to stake Solana and earn a 5% yield through the app, as per a recent announcement.
This compares to competitors like Kraken and Binance, which offer Solana staking yields of up to 5% and 8%, respectively.
Staking involves users committing their tokens to support network operations, such as transaction validation and network security.
Staking rewards, which serve as a form of passive income, can fluctuate based on various factors, including network inflation, the total amount of staked SOL, commission rates from validators, and overall market conditions.
In addition to Solana staking, Robinhood has rolled out local-language versions of its crypto services for users in Italy, Poland, and Lithuania.
These services include educational materials on Bitcoin, USD Coin, and Avalanche.
Johann Kerbrat, the general manager of Robinhood Crypto, highlighted customer demand, stating, “Our customers in Europe have told us loud and clear that they want an app that provides local language support and products that help them earn additional passive income.”
Robinhood reported a significant increase in its crypto trading activity for the first quarter of 2024, with crypto trading volumes rising 224% to $36 billion.
Crypto-related services accounted for about 40% of its transaction-based revenue, contributing to a second consecutive profitable quarter with a net income of $157 million.
Despite these advances, Robinhood's cryptocurrency operations continue to face significant hurdles.
On May 6, the platform received a Wells notice from the U.S. Securities and Exchange Commission (SEC), signaling potential enforcement action regarding its cryptocurrency dealings.
The SEC's inquiry into Robinhood focused on its cryptocurrency listings and crypto custodian practices, probing for potential securities violations.
As a precautionary measure, Robinhood has opted not to offer staking services in the U.S., nor does it list certain cryptocurrencies or provide lending services.
Sources:
https://cointelegraph.com/news/robinhood-solana-staking-european-markets
https://newsroom.aboutrobinhood.com/robinhood-crypto-staking-europe/
