The cryptocurrency arm of brokerage firm Robinhood Markets Inc. (NASDAQ:HOOD) announced the launch of its first-ever cryptocurrency staking product, though the new service will be limited to the European market.
What Happened: The offering will cover Solana (CRYPTO: SOL), the fifth-largest cryptocurrency by market cap, Robinhood stated in a blog post on Wednesday.
The new service would allow customers to stake their SOL holdings using the app, enabling them to earn yields while having the freedom to unstake their funds at any time.
Just in: @RobinhoodCrypto EU now supports Solana staking, introducing their first-ever crypto staking product!
— Solana (@solana) May 15, 2024
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Owing to the announcement, Solana's total value locked jumped 9% in the last 24 hours, according to data from DeFiLlama.
Robinhood Crypto allows users to trade popular coins such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and others.
Why It Matters: The strategic foray was the first by the trading platform in its efforts to grab a slice of the expanding cryptocurrency staking industry.
The global staking market cap stood at $279.57 billion at the time of writing, according to Staking Rewards Data. Solana's staking market cap was worth $60 billion, with about 64% of the eligible supply currently locked in staking services.
Robinhood's focus on the European market comes amid increasing regulatory problems in the U.S., where the company is headquartered. The company got slapped with a Wells Notice from the SEC earlier this month, over concerns of securities laws violations. Before that, it was subpoenaed by the regulator in February.
But despite these challenges, the firm reported a 3X rise in crypto volumes for the first quarter.
Price Action: At the time of writing, SOL was exchanging hands at $$163.23 following a 13.22% jump in the last 24 hours, according to data from Benzinga Pro.
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