U.S. users will be able to fund their non-custodial wallets through Robinhood Connect.
MetaMask, a crypto wallet with over 30M monthly users, is partnering with Robinhood in an effort to make it easier to buy and use crypto.
The wallet provider is adding Robinhood Connect, a product which allows users to fund self-custodial wallets, to MetaMask’s stable of payment processors. MetaMask has already partnered with PayPal as a payment processor for its Buy Crypto feature.
“Robinhood has millions of users in the US that have already gone through KYC that have already established a banking relationship,” Lorenzo Santos, Product Manager at Consensys, MetaMask’s parent company, told The Defiant.
The development may smooth the user experience of onboarding into self-custodial crypto. “A lot of back office challenges with payment processing are resolved because we’re relying on Robinhood’s network, which has been proven and developed to onboard to crypto,” Santos said.
Onboarding in Web3 has been a major pain point for the space since its inception. Exchanges like Coinbase have made buying crypto relatively simple, but moving from custodially owning crypto to self-custody and using Web3 applications has proven to be a more complex problem.
MetaMask works with companies like PayPal and Moonpay to facilitate crypto purchases in the U.S. Its Buy Crypto feature is available in 189 countries, according to its website. “We have local providers that support places like India and Brazil and really understand payment processing in those areas,” Santos said.
Partnering with Robinhood, a publicly traded U.S. firm, may serve to shore up MetaMask’s operations in a dicey regulatory environment. “Bringing on these fintech companies makes us a little bit more resilient [in terms of] being able to offer users another way to on-ramp into the space,” Santos said.