Robinhood Finds Ally in Jump Trading to Power Fee-Less Cryptocurrency Trading
According to a Bloomberg report published May 29, 2019, popular fintech company Robinhood Markets Inc. has turned to Chicago-based trading firm Jump Trading LLC. to help it buy, sell, and store cryptocurrencies like bitcoin (BTC), ether (ETH), and others.
First Mover Advantage
California-based fintech startup Robinhood is following an aggressive marketing and expansion strategy to capture what is still a largely unoccupied market. On May 24, 2019, reports emerged stating that Robinhood was primed to raise at least $200 million in a new funding round that valued it at about $7 billion.
At a time when institutional investors are still of two minds regarding the cryptocurrency industry, Robinhood is looking to take advantage of its early entry into the market.
In a move to ensure the organic growth of the company in the cryptocurrency space, Robinhood has partnered with a small-scale but profitable trading firm called Jump Trading. Sources in the know told Bloomberg that Jump would provide the necessary infrastructure to Robinhood to buy and sell digital currencies on customers’ behalf.
Robinhood, which quickly marketed itself to the millennial investor by offering “zero-fee trading,” increased its user base by heaps last year when it began offering cryptocurrency services in several states in the U.S.
The Silicon Valley darling recently bagged the prestigious BitLicense from the New York Department of Financial Services (NYFDS.) Subsequently, the firm launched its cryptocurrency trading app in New York on May 24, 2019.
Steadily Moving Towards Crypto Business
Founded in 1999 by two Chicago-based veteran traders, Jump’s inclination towards the cryptocurrency ecosystem gives an idea about the increasing number of traditional financial players who are eager to wet their feet in the notorious industry in hopes of exorbitant returns.
Similarly, New York-based trading platform E*Trade also made its cryptocurrency ambitions public in April 2019, when it filed an application with the U.S. Securities and Exchange Commission (SEC) seeking to establish a digital currency trading business.