Robinhood Crypto expands to 8 more US states, bringing the total to 47 states

Quick Take

  • Investing app Robinhood has expanded its cryptocurrency trading service to 8 more states
  • The firm has also brought on a former Credit Suisse associate to lead the crypto business

Investing app Robinhood has brought its commission-free cryptocurrency trading service to 8 more U.S. states.

The added states are Delaware, Kentucky, Louisiana, Maine, Maryland, Minnesota, Nebraska, and Vermont, according to an announcement Thursday. The additions bring the total to 47 U.S. states, where Robinhood Crypto now operates.

“We’ll continue expanding to more,” said the firm. Robinhood currently offers trading in 7 cryptocurrencies, including bitcoin (BTC) and ether (ETH).

Robinhood has also hired a new head of crypto, Sina Nader, who will oversee the firm’s crypto business and focus on its “cold” storage custody system to keep the platform secure. Nader was previously a director of private investment cryptocurrency firm CryptoLux Capital, according to his LinkedIn profile.

He has also worked with Credit Suisse and Morgan Stanley, per the profile. As an associate at Credit Suisse, Nader manager a $100 million portfolio of equities, derivatives and alternative investments, according to the profile. 

"We’re also thrilled to welcome Sina Nader as our Head of Crypto," Robinhood  said, adding: "With an extensive background working in both the crypto industry and at some of the world’s leading banks, Sina brings valuable experience from roles that span the financial system."

Robinhood initially launched the cryptocurrency trading service in Feb. 2018. It also operates in New York, having received a BitLicense earlier this year. The firm also recently won a nod from the UK Financial Conduct Authority (FCA) to operate in the country. According to Thursday's announcement, Robinhood also offers insurance on its clients' cryptocurrency holding through a policy underwritten by "certain underwriters at Lloyd's."

Robinhood, unlike retail cryptocurrency exchanges, doesn't charge a fee to trade cryptos. The firm routes orders to a number of exchanges, brokers, and over-the-counter trading desks, including Chicago-based Jump Trading, as per Bloomberg reporting

The firm appears to be interested in further expanding its cryptocurrency unit as it is hiring a chief compliance officer to to manage day-to-day cryptocurrency compliance operations.

Robinhood is well-funded, having raised $323 million in a Series E round earlier this year. The firm, which is currently valued at $7.6 billion, has also been looking to list its shares on the public markets through an initial public offering or IPO.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.