The stock trading called Robinhood will begin facilitating zero-fee cryptocurrency trading this coming February 2018.
The company says the goal is to grow their customer base while better serving their existing customers.
Robinhood will let users buy and sell the cryptocurrencies bitcoin and ether without paying any transaction fees.
As of writing, users can track 16 total cryptocurrencies via the app, setting up price alerts and monitoring the growing crypto market.
Currently, Coinbase, one of the world’s largest cryptocurrency platforms, charges U.S. customers a 1.5 to 4 percent fee for transactions. Some of this money goes to pay the miners who maintain each cryptocurrency’s blockchain. So, how does Robinhood plan on doing the same thing for free?
“We’re planning to operate this business on a break-even basis and we don’t plan to profit from it for the foreseeable future,” Robinhood co-founder Vlad Tenev told TechCrunch.
“The value of Robinhood Crypto is in growing our customer base and better serving our existing customers,” Tenev added.
Robinhood Crypto would operate as a loss leader for the company while it continues to earn revenue through traditional stock transactions.
However, it has the potential to increase the app’s userbase, which is currently set at about 3 million users, by appealing to a number of demographics.
Meanwhile, the move could also please those who argue that today’s sometimes sky-high fees are stifling cryptocurrency adoption.