Stock and crypto trading app Robinhood plans to offer banking services to its 4 mln users, Bloomberg reported June 20, citing anonymous sources.
Robinhood, which in February began allowing zero-fee cryptocurrency trading through its Robinhood Crypto tool, is currently in “constructive” talks with the U.S. Office of the Comptroller of the Currency (OCC) to position itself as a banking services provider.
According to “people familiar with the matter,” Robinhood is going after features such as savings accounts, beating out competition from traditional banks through improved interest rates and an all-in-one financial portal.
The move comes a month after the company announced it had raised $363 mln in funding to expand Robinhood Crypto to the entire U.S. market.
At the time, Robinhood claimed to be “the fastest-growing brokerage ever,” reaching a valuation of $5.6 bln.
Meanwhile, competition for banking customers is increasing in the cryptocurrency-oriented sector.
Goldman Sachs-backed Circle, which in February acquired cryptocurrency exchange Poloniex, revealed it was also pursuing a banking licence with the OCC earlier this month.
Coinbase, the largest U.S. crypto exchange and wallet provider, also began talks with the OCC regarding obtaining a federal banking licence and its “business model,” Cointelegraph reported in May.