Mizuho analyst Dan Dolev believes financial services firm Robinhood now has an edge over cryptocurrency exchange Coinbase amid plans to add crypto wallets to its stock trading app.
Earlier this week Robinhood announced it will start testing crypto wallets in October.
In a CNBC interview, Dolev says Robinhood is in a “much better position” in the digital-only bank [neobank] race than Coinbase.
He cites Robinhood’s fee-free trading and high user engagement levels to back up his outlook.
“I think Robinhood is much better positioned. And the key thing about Robinhood, and that’s what people don’t fully understand, is the engagement on the app is way bigger than the engagement of any other app that we’ve seen. Some people use it multiple times a day. Some people use it multiple times an hour.
It’s the ultimate super app, and they’re giving away everything that Coinbase gives for a fee, they give it away for free. And I think that’s why Robinhood is in a much better position long-term to become one of the leading next-gen neobanks versus Coinbase.”
Dolev says another advantage that Robinhood has over Coinbase is its relatively diversified range of offerings.
“The key here is diversification. The more diversified you are, the better off you are. So if you take Coinbase, it’s all about crypto. They will live or suffer depending on where crypto is.
If you think about Robinhood, you’ve got crypto, you’ve got equities, and you’ve got the banking side, which is kind of like the future.
The key here is diversification and the ability to survive if one area of the market does better or worse in any given time.”
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/breakermaximus
