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Robinhood acquired Cove Markets


Online broker Robinhood has announced the acquisition of the cross-exchange digital asset trading platform Cove Markets to develop its application. The terms of the transaction were not disclosed.

“We started Cove Markets three years ago to help crypto investors get the most out of their trading experience. Now, we are excited to join Robinhood to help build a world-class platform; that can improve trading for millions of customers”. Said Chief Executive Officer and co-founder of the company, Scott Knudsen.

“[Cove’s] rich experience in transaction execution and market infrastructure will create more efficient trading opportunities,” said Christine Brown, COO of Robinhood Crypto.

Bringing the benefits of better competition in crypto markets

Consequently, the co-founders of Cove Markets, Scott Knudsen and Victor Glava; as well as the project team will join the staff of Robinhood.

Furthermore, launched in 2018, Cove Markets aims to help users manage accounts and use tools to create portfolios.

Moreover, traders and investors can use Cove Markets to connect to up to seven exchanges, including Coinbase Pro, Kraken, and Bitfinex, to trade over 50 major currencies and altcoins.

Robinhood’s future development

Recall that previously in December, Robinhood announced a partnership with the analytical platform Chainalysis before launching its own cryptocurrency wallet. Robinhood will use Chainalysis’ Know-Your-Transaction, a monitoring compliance solution, as well as Chainalysis Reactor, an investigation program, according to the company.

In September, an online broker confirmed the testing of an application for storing digital assets. In addition, the application has a code related to asset transfers. Developer Steve Moser discovered that Robinhood customers will have the opportunity to configure two-factor authentication for the wallet. Meanwhile, users can only trade cryptocurrencies and sell them for fiat.

According to Robinhood, the waiting list of the cryptocurrency wallet being developed has exceeded one million users. Thus, the deployment of the feature for all clients will complete expectedly in 2022.

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