Robinhood Raise $363 Mln in Funding Round, Seeks to Become Largest Crypto Platform
Stock trading firm Robinhood has announced that it raised $363 million in the just concluded Series D round bringing its total valuation to $5.6 billion, news media Fortune reported on Thursday, May 10.
According to the report, Robinhood has become the the second most valuable private fintech startup in the U.S. after Stripe, the online payments company. DST Global led Robinhood’s latest round, while new investors including Sequoia Capital, Kleiner Perkins, Iconiq Capital and Capital G (the venture capital arm of Google parent Alphabet (GOOGL, +1.47%)) also participated.
In February, Robinhood launched its commission-free cryptocurrency trading platform, Robinhood Crypto, which has been deployed to 10 states across the U.S. and is expected to roll out country-wide by the end of 2018. The platform currently offers trading in Bitcoin (BTC) and Ethereum (ETH), and also allows its users to track market data for 16 cryptocurrencies.
Speaking to Fortune, Robinhood’s co-founder and co-CEO, Baiju Bhatt, said that the new funding will be used to accelerate its product expansion, hiring, and towards infrastructure and operations. Bhatt believes that the company will soon become a close rival to Coinbase.
“We expect by the end of the year to be either the largest or one of the largest crypto platforms out there,” says Bhatt. “But we also really feel we’ll have the absolute best experience for investing in crypto as well—from having a large variety of coins available to a more favorable cost structure—mainly no commissions—to just quality of product.”
Robinhood will be up against many competititors, with reports over the past week that major Wall Street institutions, including Goldman Sachs and the parent company of the New York Stock Exchange, Intercontinental Exchange (ICE) plan to enter the Bitcoin trading market.
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