Crypto Trading App Robinhood Raises $363M USD In Series D Fundingbr>
Stock trading app Robinhood has raised $363 million in its Series D funding round, valuing the firm at $5.6 billion. The round was led by DST Global, with Iconiq, Capital G, Sequoia Capital and KPCB also participating.
The announcement comes just a few months after Robinhood launched its commission-free crypto trading platform, which is currently available in 10 US states. The company said the new funding will be used to expand the platform to new states as soon as it receives the necessary licenses. The funds will also be used to invest in its infrastructure and operations and to hire more employees.
In an interview with Fortune, Baiju Bhatt, Robinhood’s co-founder and co-CEO, said he expects the crypto offering to roll out country-wide by the end of the year.
“We expect by the end of the year to be either the largest or one of the largest crypto platforms out there,” said Bhatt. “But we also really feel we’ll have the absolute best experience for investing in crypto as well—from having a large variety of coins available to a more favorable cost structure—mainly no commissions—to just quality of product.”
The Robinhood Crypto platform, which allows retail investors to trade bitcoin and ethereum, also offers market data on a total of 16 cryptocurrencies including bitcoin, ethereum, Bitcoin Cash, Litecoin, Ripple, Ethereum Classic, Zcash, Monero, Dash, Stellar, Qtum, bitcoin Gold, Omisego, NEO, Lisk and Dogecoin. Bhatt said they plan to make other cryptocurrencies available to trade eventually, but he did not specify which ones.
The company does not make any money on cryptocurrency trading. It makes money through its subscription service Robinhood Gold, and by collecting interest on deposits. Bhatt declined to say how many users pay for a premium membership or whether the company is profitable. But he said the company is sticking with its current strategy.
“We plan on continuing to offer these services for free. There’s no real scenario where we would change that at all,” Bhatt said. “I think we’re pretty relentlessly focused on our mission of making the markets and the financial services system more accessible to the broader population, and that’s a pretty good North star for us.”