Cryptocurrency and Stock Trading startup, Robinhood has announced its intention to launch an Initial Public Offering, according to a Techcrunch report.
Robinhood’s CEO, Baiju Bhatt, in an interview with the technology news and analysis site on Thursday revealed that his firm had begun a formal search for a chief financial officer (CFO) who would create financial success for the company and its potential stakeholders.
Bhatt disclosed that the financial service firm’s financial performances and security procedures are currently undergoing an extensive audit by U.S monetary regulatory authorities such as the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) in a bid to ensure compliance with regulatory provisions.
It will be recalled that the startup, which began offering trading services in cryptocurrencies raised $363 million in a series D round funding and $110 million in a series C round in May. DST Global and Sequoia Capital, which led the May funding, valued Robinhood at $5.6 billion after the funding rounds.
TechCrunch also reported that Robinhood generates income from three different monetization schemes. Asides the money it makes from sell order flow to stock exchanges seeking more liquidity, the tech firm charges interest on the accounts it maintains for users and sells premium subscriptions.
After the successes recorded in May, Bhatt revealed that the company intends to become one of the largest cryptocurrency trading platforms, if not the best, come year end. True to the CEO’s claims, it appears that the company’s ambitions to become a globally recognized, well-established, and a financially sound organization knows no bounds.
Recent events suggest that the commission-free trading app aims to become more than just one of the big guys in the crypto sphere. In June, a Robinhood job ad sparked rumors the firm will develop its own cryptocurrency wallet. The wallet, it is believed, will enable Robinhood’s clients to move their cryptocurrencies from other wallets and exchanges into the system without having to sell them first.
If the rumors turn out to be true, then it will represent one of the significant disruptions to occur in the cryptocurrency world. Currently, Robinhood offers traders the opportunity to trade bitcoins and other major cryptocurrencies like Ethereum, Litecoin, Ethereum Classic, Bitcoin cash, and Dogecoin.