Robinhood is debuting a feature that gives traders more control over digital tokens in its latest expansion in the cryptocurrency space.
The newly public brokerage is testing "crypto wallets" with select clients next month, the company announced in a blog post Wednesday. The so-called wallet will allow investors to trade, send and receive digital currencies, as well as move them in and out of the Robinhood app.
Shares of Robinhood rose 5% on Wednesday.
In recent months, some users â particularly Dogecoin traders â have taken to social media to complain that by using Robinhood as their broker, they had exposure to crypto prices but not actual ownership of the coins themselves.
"We're not first to the market â we've been taking our time to make sure that we build this in a phased approach," Robinhood chief product officer Aparna Chennapragada told CNBC in a phone interview. "We'll have a few customers come in, iterate on the product, get the customer feedback and then expand from there."
Certain clients will begin testing the product and Robinhood will share their feedback over its blog and Twitter, said Chennapragada, who spent 12 years at Google leading product, engineering and design teams before joining Robinhood. The rollout will eventually allow clients on a waitlist to join.Robinhood's growing crypto business
The start-up debuted cryptocurrency trading three years ago, but it has become increasingly important to the company's top line. More than half of Robinhood's transaction-based revenue last quarter came from cryptocurrency trading. That's up from just 3% a year earlier.
The new wallets will let clients consolidate their digital coins into one account. Clients can then trade, send and receive cryptocurrencies to and from other wallet addresses. Rivals Coinbase and Gemini already offer this feature. Bloomberg News first reported Robinhood's plan to roll out this feature in a beta version o...