The cryptocurrency, stock marketing and trading platform Robinhood Market Inc. is trying to enter the banking industry, a few months after the withdrawal of their controversial deposit protection services, reported S&P Global Market Intelligence.
Robinhood has applied for a bank charter and is securing approval from the Office of the Comptroller of the Currency, which will be their first step in entering the banking industry. With the approval, the platform will be able to offer all kinds of banking products and services.
Robinhood Eyeing the Banking Industry
Robinhood already has a mobile app to run crypto trading services online. Now, with this charter, it aims to provide both crypto and traditional banking services keeping in mind the convenience of its customers. Around five million people are estimated to be currently using the platform to trade in cryptocurrencies.
Robinhood Makes a Comeback After Failed Attempts
Robinhood has already tried offering saving and checking accounts that were supposed to be backed by Securities Investors Protection Corporation which they announced last year in December. However, it later came out that Security Investors Protection Corporation were only going to give the guarantee of the funds that were used to buy securities and not of the deposits held as cash.
Soon after this, the company started rebranding this launch as a cash management feature. Robinhood still plans on launching the cash management feature which will be an offering for brokerage customers.
Banking Services will be a Subsidiary
If Robinhood receives a bank charter, it will allow the company to open a full-service bank which they will run alongside their crypto trading business. Robinhood aims at launching a bank that would act as a subsidiary of the Robinhood Markets Inc., the company said in their announcement. The bank, if approved, will be one of the highest profile banks in recent times.
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