Robinhood, a digital and commission-free trading platform, that also offers cryptocurrency trading services is extending its suite of services. Robinhood is working on launching SOL staking services for European investors. On this account, the investors will be able to earn 5% yearly yield on their SOL stakes.
Robinhood to Face Regulatory Hurdles in the US
This is the first instance for Robinhood to launch staking options for SOL token. The firm is currently under regulatory scrutiny in the United States. On this front, the digital trading platform has ruled in favor of introducing a new trading option for its account holders in Europe.
The firm confirmed the new services in a 15th May announcement. The platform noted that it is the first staking service that is limited to investors in Europe for the time being.
Robinhood further noticed that the investors can now stake SOL via the official application of the trading platform.
Meanwhile, major cryptocurrency trading platforms such as Kraken and Binance are already offering SOL staking options for EU investors with a yield award of up to 5% and 8%. Stakers will be able to earn passive income from staking holdings and supporting the Solana network.
European Crypto Investors Can Now Earn Yield Income via SOL Staking on Robinhood
Robinhood is a digital trading platform that promotes financial inclusion through online medium. The firm has now initiated the first staking service. In this manner, the investors can earn passive income by locking SOL tokens on Robinhood that would allow them to validate transactions on the blockchain and consolidate network operation.
In this way, the investors on the platform may be able to earn staking rewards in addition to profits from spot trading.
However, the yield income from SOL staking is subjected to variation on account of factors such as inflation rates, total SOL staked, investor inclination, and commission rates. Robinhood reported a spike in trading activities since the first quarter of 2024.
The platform posted about a 224% surge in trading volumes account for generating $36 billion for the duration on social media.
The firm further noted that about 40% of its revenue was generated from cryptocurrency-based services. On this note, Robinhood concluded the second quarter with a profitable $157 million in revenues.
While market demand for Robinhood is on the rise, its crypto section is still facing various challenges. The firm received a Wells Notice from the Securities and Exchange Commission (SEC) in the United States on 6th May 2024.
Bybit CEO Shares Proof-of-reserves to Disprove Insolvency Claims
Another report shared news of a crypto trading platform faced with adversity. Bybit CEO Ben Zhou has recently published the proof-of-reserve details of the firm.
The executive highlighted that the publication was directed towards disproving the insolvency rumors. He noted that such ideas lacked proof and were not based on facts. News about Bybit getting hacked leading to insolvency was circulating on social media platforms on 22nd May.
This action generated a recycling of memes from the FTX downfall alluding to Bybit. Some of the investors joked about withdrawing their investment out of the firm while others made an effort to investigate it.
The rumors were presumably initiated on account of a proof-of-reserve graph via Arkham Intelligence. The graph indicated as if Bybit wallets were getting drained and generated speculation among its investors if the platform was getting hacked or drained.
However, a closer inspection of the graph allowed investors to confirm that the funds were secure and safe. Nevertheless, such rumors prompted Bybit management to issue an official statement that such rumors were baseless.
At the same time, Zhou shared a link of proof-of-reserve records and Nansen dashboard containing all Bybit wallets and assets. The PoR link shared by Bybit CEO indicated that the trading platform holds more than 100% of customer deposits. This metric has confirmed that all assets on the trading platforms were secure and allowed investors to make withdrawals.
