The acquisition is the first for Robinhood's crypto arm and follows its $140 million cash buyout of Say Technologies, its first major purchase since its IPO in July.
Earlier this week it also said it is preparing to rollout a crypto wallet, integrating analytics tools from leading crypto intelligence firm Chainalysis.
Currently, Robinhood offers users exposure to the price movements of various cryptocurrencies on its brokerage app, which also offers more traditional stock trading. However, users cannot withdraw or deposit crypto off-platform.
In September, Robinhood announced plans to change this and allow users to move tokens as they would be able to on a crypto exchange like Coinbase or Kraken. That is primarily a regulatory challenge, as the expectations for such a widely used platform to protect against money laundering are quite high.
Since Robinhood went public its stock price has taken a hammering. On Tuesday it was trading at around $18.50, down from all time highs near $70.
Update: A line suggesting that the deal would make it easier for Robinhood users to manage their accounts was removed on December 15, after a spokesperson clarified that the firm will not be providing its customers access to platforms through an API, as Cove did.
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