Robinhood, a leading platform for crypto and stock trading, has just made a big move in the world of crypto investment by launching Solana staking services for its European users. This means that people can now earn rewards on their Solana holdings, right from within the Robinhood app, with an initial Annual Percentage Yield (APY) of about 5%.
While Robinhood’s offer is strong, it falls slightly short of Coinbase’s 5.42% APY for Solana stakers. However, there’s another player in the game: Phantom Wallet. This platform stands out by offering an even higher APY of 7.58% for Solana staking.
What is Solana Staking, Anyway?
Staking involves users locking up their cryptocurrency to help run blockchain networks and in return, earning rewards. With Robinhood’s new feature, investors can now use their SOL holdings to earn rewards directly in the app, giving them more control over their investment strategies.
Customer Feedback Sparks Innovation
Johann Kerbrat, VP and GM of Robinhood Crypto explained that this initiative was inspired by feedback from European customers. Many customers expressed a desire for localized language support and opportunities to earn passive income through their crypto holdings.
In response to this feedback, Robinhood Crypto has introduced a range of new features specifically designed for its European customers. These include localized apps, crypto rewards for new users, and updated Learn & Earn modules aimed at providing valuable educational content about cryptocurrencies.
Why Solana Over Ethereum?
Robinhood’s decision to launch Solana as its first staking product was driven by the strong popularity of the SOL token among its EU users.
The platform highlighted that staking on Solana is simpler compared to Ethereum, with a shorter bonding period for newly-staked assets to start earning yield. Solana’s bonding period typically completes within two days, whereas Ethereum’s bonding period can vary from days to a few weeks.
In response to inquiries about adding staking for other assets, Johann Kerbrat states that Robinhood is exploring additional offerings too. However, the EU platform also supports Solana meme coins such as BONK and WIF.
Robinhood’s EU Branch Work Independently
Despite Robinhood facing scrutiny from the US SEC with a recent Wells Notice regarding its crypto listings, Johann Kerbrat has clarified that the European operations remain free and operate under a separate business model.
This statement underscores Robinhood’s commitment to regional compliance while serving its European customers.
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