- Robinhood has unveiled a tool that facilitates easy access to DeFi platforms
- The tool also allows DeFi users to access funds in their Robinhood wallet
- Dubbed Robinhood Connect, it comes two years after the online brokerage firm revealed plans to provide crypto lending and staking services
Online brokerage platform Robinhood has unveiled a tool to facilitate easy access to and from decentralized finance (DeFi) protocols without the need to first log in to the Robinhood wallet. Dubbed Robinhood Connect, the feature comes two years after the platform disclosed plans to dive into the DeFi world by providing crypto lending and staking services. Apart from allowing users to send and withdraw funds directly from DeFi platforms, Robinhood Connect also allows users to access their wallet information inside DeFi protocols.
The Web 3.0 Financial Revolution
According to Robinhood, the new tool will be available to developers to link inside their apps for easier access to the DeFi world. The company’s Crypto General Manager Johann Kerbrat noted that a mix of virtual currencies and Web 3.0 can revolutionize financial systems but stumbling blocks like ease of access must first be addressed to drive adoption.
Kerbrat added that the new tool is part of the company’s mission to make the platform the go-to on-ramp to crypto. Apart from Connect, the platform announced other features such as a crypto-specific tab and a price alert section on its platform.
The new features come a year after Robinhood unveiled its Wallet to one million users on its waitlist. However, its sail in the crypto sea hasn’t been all smooth. In November it suffered a data breach where five million email addresses were stolen.
Unclear Regulations a Stumbling Block
In February this year, it revealed that it was subpoenaed by the United States securities watchdog SEC over its crypto listing and custody policies. Last year, Robinhood CFO Jason Warnick observed that unclear crypto regulations are muzzling the company’s efforts to meet users’ cryptocurrency needs.
With DeFi platforms continuously suffering from security breaches, Robinhood will need to provide strong security measures for Connect to gain sizable adoption.
