Sep 21, 2022 14:32
Even in the face of short-term turmoil, the general acceptance of cryptocurrencies isn't slowing down.
Traditional institutions aren't staying away from cryptocurrency because of the bear market either. This is shown by Robinhood (NASDAQ:HOOD), which now expands its support for cryptocurrencies by adding USD Coin to its trading platform (USDC-USD).
Since 2018, Robinhood has listed cryptocurrencies on its platform for purchase and sale. It may not come as a surprise that it is also one of the first financial institutions outside of the cryptosphere to accept digital assets. When it comes to e-trading, Robinhood has a reputation for breaking the rules.
Initially, only Bitcoin (BTC-USD) and a few other cryptocurrencies were supported by Robinhood. Six months later, Dogecoin (DOGE-USD) was added to the list. However, it took the company almost four years before it touched new cryptocurrency listings once more. Robinhood introduced four additional cryptocurrencies in April. Then, intermittently during June and July, it added a number more. By adding USDC to its trading floor this month, the company is launching its first-ever stablecoin listing.
Robinhood investors won't be able to profit from USDC because it is a stablecoin. However, for a business that is mainly focused on cryptocurrency growth, the listing is a logical next step. For the first time, Robinhood provided customers with a non-custodial wallet earlier this year, enabling them to take their holdings outside of the site. Users will be able to convert their current stablecoin holdings into cash and utilize that money to purchase stocks on Robinhood with USDC support. Others will be able to do the same thing without opening a brokerage account with a different business by converting their funds into non-volatile cryptocurrencies.
This Robinhood listing will be quite advantageous for the USDC cryptocurrency. The app has a large user base, many of whom are less knowledgeable about cryptocurrencies than users of cryptocurrency exchanges. Therefore, USDC will be the first stablecoin these new users get to know. Additionally, the new listing is assisting USDC in overcoming recent turmoil.
Recently, USD Coin has received a lot of media attention, but none of it has been beneficial to its growth. For instance, the business that created it had to freeze 75,000 coins because Tornado Cash was the target of Treasury Department penalties. Users must now dox their private wallet data to the American authorities in order to recover their USDC.
And that's not all. As cryptocurrency exchange Binance () seeks to increase adoption of its own stablecoin, Binance USD, USDC has also seen some concern (BUSD-USD). Binance is discontinuing support for USDC and automatically converting customers' USDC deposits to BUSD in an attempt to increase BUSD liquidity on its platform. That news undoubtedly damages USD Coin, the biggest cryptocurrency exchange in the world based on trade volume. After all, Binance trades account for a significant portion of its trading activity.
In an attempt to increase the usage of BUSD, WazirX, a Binance subsidiary, recently stated that it will also delist USDC. One of the largest exchanges in India, a rapidly expanding market for cryptocurrencies, is WazirX. Therefore, USDC is also missing out on an opportunity to profit from that region of the world.
Sep 20, 2022 14:27
Sep 21, 2022 14:36