Robinhood Taps Polygon Over Ethereum for Its Web3 Wallet Beta Launch

Robinhood announced the launch of its beta Web3 wallet, giving 10,000 waitlisted customers the ability to participate in the wallet’s testing phase.

The application, which is solely available on Apple mobile devices, will let users trade crypto with reportedly “no network fees,” as well as earn yield by connecting with other decentralized applications (dApps).

Robinhood Crypto's CTO and general manager Johann Kerbrat said that the "Robinhood Wallet strips away some of the complexities of web3 to make crypto more accessible to everyone.”

The beta version will not support NFT trading or marketplace activities, with this feature slated for the wallet’s final rollout. 

Robinhood said that the decision to select Polygon as their exclusive blockchain partner centered around the network's “scalability, speed, low network fees, and robust developer ecosystem.” 

The firm noted that they “will eventually be[come] a multichain wallet that supports a wide number of blockchains."

When asked if Ethereum's shift to a proof-of-stake (PoS) consensus mechanism was behind the reason for opting for Polygon, Robinhood's senior product communications manager Oliver McIntosh told Decrypt that this was not part of the decision.

Instead, he added, "leveraging the Polygon network provides a strong infrastructure for Robinhood Wallet due to its scalability, speed, low network fees, and robust developer ecosystem to provide one of the best trading experiences for customers. We are excited to partner with Polygon for our initial launch and look forward to offering multichain support in the future."

Robinhood’s slow roll-out

Robinhood first launched the beta version of its crypto wallet in January this year at the pinnacle of the crypto bull market hysteria. This inaugural version lets 1,000 users trade popular assets Bitcoin, Ethereum, and Dogecoin, yet limited withdrawal totals to just $2,999.

In May, the company teased the development of its Web3 wallet.

Speaking with Decrypt at the time, Robinhood was tight-lipped on the subject of whether Ethereum’s transition to proof-of-stake (PoS) consensus would affect its inclusion with an anonymous spokesperson stating that: "There’s multiple solutions to deliver on that vision, and we’re excited to show everyone how we’re going to do it."