Arkham Intelligence has disclosed that a wallet owned by Robinhood contains over $2.5 billion worth of Ethereum (ETH).
The business has identified Robinhood as the owner of the fifth-largest ETH wallet, with 1.5 million ETH (worth $2.54 billion), according to a tweet from Arkham on Wednesday.
The third-largest Bitcoin (BTC) address, which is currently held by Robinhood and has 118,300 BTC ($3 billion), was earlier recognised by the intelligence platform as being his.
In addition, “We’ve also identified [Robinhood] as the owner of the 5th largest ETH wallet, holding $2.54 billion of ETH,” the tweet said.
The address also contains more than 100 other ERC-20 tokens, valued at a total of $177.1 million, in addition to ETH.
With those figures, Robinhood now has more than $2.71 billion worth of Ethereum-based tokens in total.
The address maintains assets in custody on behalf of users, according to Arkham in response to a user who questioned whether the money belonged to Robinhood or its consumers.
“SEC requires that crypto balances on RH are backed 1:1,” the spy company noted.
The three wrapped ether contracts, the beacon deposit contract for Ethereum, and the addresses of the two biggest cryptocurrency exchanges, Kraken and Binance, make up the four Ethereum addresses that are larger than Robinhood’s account.
The largest of these addresses is without a doubt the beacon deposit contract. More than 29 million ETH ($49.7 billion), or one-fourth of the whole Ethereum supply, are contained in it.
According to the on-chain analytics company, a wallet linked to Robinhood contains 122,076 BTC, 34.1 trillion Shiba Inu (SHIB) tokens ($277.8 million), 4.9 million Chainlink (LINK) tokens ($29.7 million), and 2.6 million Avalanche (AVAX) tokens ($29.6 million).
It’s important to note that an AI-generated script from cryptocurrency media outlet Decrypt incorrectly said that Robinhood’s wallet contains $2.5 billion rather than $4.3 trillion in ETH.
Robinhood’s Wallet Increases Crypto Support
Robinhood announced the addition of support for Bitcoin, Dogecoin (DOGE), and in-app Ethereum exchanges to its wallet product on Wednesday.
The business announced that it is adding “custodial, sending, and receiving capabilities for Bitcoin and Dogecoin” in addition to its current capability of conducting Ethereum swaps.
A small number of users will first have access to more than 200 tokens for trading, but the company aims to make this feature available to more people soon.
Johann Kerbrat, General Manager of Robinhood Crypto, mentioned that the Robinhood Wallet simplifies various aspects of DeFi and the larger Web3 environment, making it easier for regular individuals by minimizing complexities and entry obstacles.
Robinhood has had a hard time maintaining high trading volumes despite its expanding presence in the cryptocurrency industry.
According to a June 2018 report from Robinhood, crypto trading has decreased by 68% from the prior year.
The company’s monthly operating statistics report shows that crypto trading was close to $2.1 billion in May 2023, compared to $6.6 billion a year earlier.
Robinhood reported $31 million in crypto trading revenue for the second quarter of 2023, an 18% drop from the $38 million reported for the first quarter.
According to more recent reports, the regulatory climate in the US may have been a factor in Robinhood’s decision to stop its crypto business partnership with market maker Jump Trading.
