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Robinhood has launched its Ethereum (ETH) and Solana (SOL) staking services in the US

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Robinhood has launched its Ethereum (ETH) and Solana (SOL) staking services in the US. The feature, which was previously available to Robinhood’s European customers, now brings the ability to stake ETH and SOL directly through the platform for US users.

The staking process involves users locking their tokens to validate transactions and contribute to network security, then earning rewards. Rewards are distributed based on the respective network’s protocol rates, with Robinhood taking a share depending on the asset and processing structure.

According to the announcement, Robinhood users can begin staking with as little as $1. The rollout follows a prolonged wait due to regulatory uncertainty that previously kept the firm from offering these services domestically.

Robinhood staking process 

While staking Ethereum, customers can earn rewards between 50% to 100% of the protocol rate. The variation depends on the platform’s approach. It aggregates different user stakes to meet validator requirements. This allows smaller investors to take part in staking without needing to meet the full validator criteria themselves.

At the same time, Solana staking allows users to lock their SOL tokens in the network and receive staking rewards. Robinhood’s platform simplifies the process by handling all technical aspects. This makes it accessible to even novice crypto users.

While the new staking services are accessible, they have certain restrictions. In several states, including as California, Maryland, New Jersey, New York, and Wisconsin, Robinhood does not allow users to stake.

The platform has expressed its intentions to expand its crypto services. Robinhood acquired Bitstamp and WonderFi earlier this year to expand its operations in the crypto financial services realm.

Robinhood aligns with the US pro-crypto administration

Recent shifts in the regulatory landscape have made it easier for Robinhood to roll out staking features. The US has shown a lot of effort and progress in rolling out regulations in the crypto industry. Currently, two bills are in their final stage to the pro-crypto president, who will most likely sign them into law immediately.

Staking services are more clearly outlined in EU regulatory frameworks, especially under MiCA, than in the US. This gave Robinhood a leg up in the area before it launched in the US.

According to reports, Robinhood execs plan to launch a blockchain on Arbitrum. While some competitors charge higher fees for staking, Robinhood aims to give users a more straightforward, low-barrier entry into the staking world.

All stock and ETF tokens will be facilitated on the new blockchain based on Arbitrum, offering 24/7 trading and self-custody. The blockchain functionalities will also enable Robinhood users to receive payment dividends on the app. 

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