Robinhood Enters the Banking Market with a New Premium Offer
Date: 2025-03-28 Author: Oliver Abernathy Categories: BUSINESS
The American platform Robinhood, known for its stock and cryptocurrency trading offerings, has announced the launch of a new banking division. At the first stage, its services will be available only to members of the Robinhood Gold premium program, who can already apply for early access.
As part of the new banking service, customers will be able to open savings and checking accounts, take advantage of 24/7 technical support, and make international transfers in more than 100 different currencies. In addition, users will be offered financial advice on taxation and wealth management, as well as the option of cash delivery directly to their home, bypassing ATMs.
Other exclusive privileges include access to closed events such as the Met Gala, the Oscars, and the Coachella festival. It will also be possible to book private jets and helicopters, which emphasizes the service’s focus on wealthy clients.
The new platform, called Robinhood Banking, will operate through a subsidiary, Robinhood Money. However, it is worth noting that Robinhood Money itself is not registered as a bank and does not have a license from the US Federal Deposit Insurance Corporation (FDIC). All banking operations will be carried out by Coastal Community Bank, a partner of the project, which is a member of the FDIC.
Consequently, deposit insurance of up to $2.5 million will only apply to funds placed through Coastal Community Bank in the event of its financial insolvency.
The premium functionality provided through Robinhood Gold is also part of the Robinhood Markets (NASDAQ:HOOD) structure, which includes both subsidiaries - Robinhood Gold and Robinhood Money.
At the time of publication, Robinhood shares are trading on the Nasdaq exchange at $44.73, having shown a decrease of 7% over the past 24 hours. Despite a 14.4% drop in a month, the value of the securities has almost doubled over the past six months, by 98.4%.
