Robinhood Markets, renowned as one of California’s best financial services firm, has big plans of reaching the levels of Coinbase and similar names, by further expanding their reach into cryptocurrency trading. At the moment, Robinhood offers retail investors more straightforward and more unadorned stock-trading experiences, by either using their Android or iPhone app.
But, things could soon change, particularly following the successful February launch of its cryptocurrency trading offering -which allows enthusiasts and potential investors to buy and sell cryptocurrencies such as Bitcoin and Ethereum in ten US states.
While this news could be considered bullish and significant for the firm, there doesn’t seem to be much stopping Robinhood from expanding. In fact, they announced a $363 million series D funding round which will ultimately allow the firm to broaden their horizons within crypto services across the rest of the United States, all by the end of 2018.
The investment round has pegged Robinhood’s valuation at approximately $5.6 billion, which means that the company is now the second most valuable private finch start-up within the United States space. The leader, of course, is Stripe, the online payments firm which has taken our breath away time and time again.
But, we shouldn’t dismiss the idea that Robinhood’s valuation has nearly quadrupled from the $1.3 billion number it received a year ago, before the previous round of fundraising. Later that year, Robinhood went on to double its brokerage accounts within that year, achieving a staggering $4 million and leaving E*Trade behind, which has “only” $3.7 million brokerage accounts.
Going back to the Series D round of funding, this is led by DST Global, and now investors are thought to join the game soon as well. Among the most exciting names we have Iconiq Capital, Sequoia Capital, Kleiner Perkins, and Capital G. All in all, these are exciting times, and the co-founder and co-CEO of Robinhood, Baiju Bhatt, explained to Fortune why he thinks the Series D funding is a success:
“I think the real ‘X-factor’ that made investors even more excited about being a part of Robinhood was seeing our ability to, with a very, very limited workforce, ship three brand new products in these last six months, while maintaining and growing one of the largest brokerages in the U.S.”
With the help of the funding they receive, Robinhood has expressed the desire to aggressively expand its cryptocurrency trading service, with Bhatt stating that he expects the company to become either the largest or one of the largest crypto platforms out there, all by the end of the calendar year.