Crypto kind Robinhood wants to offer bank accounts

The Robinhood Stock Trading Application, which has recently started deploying cryptocurrency to many US customers, is looking to offer its customers savings accounts and other traditional banking services.

Bloomberg reports that the $ 5.6 billion company, based in Menlo Park, Calif., Has already approached the regulators of the Office of the Comptroller of the Currency (OCC) to obtain the necessary licenses to receive a national bank charter.

More than 4 million people have signed up for Robinhood's commission-free trading platform, and users in 16 states can also trade bitcoin and ethereum with their equity investments. By registering as a bank, Robinhood could offer even more services to clients as it seeks to become a one-stop financial platform.

Robinhood is currently registered with FINRA as a dealer and is regulated by the Securities and Exchange Commission (SEC).

Robinhood is one of three technology unicorns operating in the field of cryptocurrency who would have inquired about registration as a national bank. Such charters anticipate state-level financial regulation, which forces US start-ups to engage in a patchwork of 50 different regulatory regimes.

Circle, now valued at more than $ 3 billion following its latest round of financing, has confirmed that it hopes to pursue a banking license in the future as part of its commitment to strong regulatory compliance.

The San Francisco-based newspaper Coinbase also reportedly held similar discussions with regulators, although the firm - which reportedly valued $ 8 billion internally - did not publicly comment on the reports.

Although attractive, national bank charters are difficult to acquire, and the OCC has expressed in past public statements an amused condescension towards Fintech companies wishing to register as financial institutions.

"Most Fintechs come to us because they've heard about this thing called a national banking charter that gives them pre-emption across the state's borders," said currency controller Joseph Otting. an industry conference. "When they come and talk to us, and they understand what it takes to be a bank, they often slip and leave skid marks leaving the building."

Robinhood spokesman Jack Randall denied CCN's request for comment.