Arkham Intelligence Exposes Robinhood as a Leading Crypto Custodian

Arkham Intelligence, a respected crypto analytics firm, has shed light on Robinhood, unveiling it as the enigmatic figure behind the fifth-largest Ethereum (ETH) wallet. With a staggering $2.54 billion worth of ETH securely held in custody for its users, Robinhood’s presence in the crypto sphere takes on a new dimension.

Previously, Arkham had disclosed Robinhood’s position as the third-largest Bitcoin (BTC) wallet holder. However, the recent revelation deepens our understanding of Robinhood’s role in the cryptocurrency landscape. This diversified portfolio isn’t confined to ETH and BTC alone. According to Arkham’s meticulous analysis, Robinhood’s crypto vault also houses 122,076 BTC (equivalent to approximately $3.3 billion), 34.1 trillion Shiba Inu tokens (with an estimated value of around $277.8 million), 4.9 million Chainlink tokens (equivalent to $29.7 million), and 2.6 million Avalanche tokens (amounting to $29.6 million).

It’s essential to note that despite its significant holdings, Robinhood’s crypto trading activity has experienced a recent downturn. This decline is reflected in its second-quarter crypto revenue, which decreased from $38 million in the previous quarter to $31 million. This phenomenon highlights the complex relationship between custody services and active trading volume.

Expanding Wallet Services

In response to these revelations, Robinhood has announced an upgrade to its wallet features, scheduled for release on August 30. The financial powerhouse is now set to offer “custodial, sending, and receiving capabilities” for Bitcoin and Dogecoin, in addition to its existing support for Ethereum swaps. This strategic move reflects the growing demand from users for a more comprehensive range of crypto services.

When Robinhood initially launched its wallet in March, it demonstrated a strong commitment to serving the crypto community. The wallet provided self-custody services not only for Ethereum but also for the Polygon network, and it included support for various tokens, including Compound, Polygon, Shiba Inu, Solana, Uniswap, and the stablecoin USD Coin (USDC).

These revelations underscore Robinhood’s substantial influence in the Ethereum market while highlighting its broad commitment to diverse cryptocurrency offerings, despite fluctuations in trading revenues.