Robinhood is now trading USDC stablecoins on its platform and supports withdrawals to Ethereum and Polygon crypto wallets. While buying and holding USDC on Robinhood is a pointless strategy for investing (the price of USDC will never change), withdrawing it to a personal crypto wallet can be a smart move, as stablecoins are the lifeblood of DeFi and may one day (hopefully) become a widely accepted payment method by retailers.
Stablecoins are cryptocurrencies with a stable value that is fixed (‘pegged’) to a real-world asset, particularly dollars. Stablecoins allow users to transfer money to each other without a bank account, eliminate the risk of being locked out of a bank account due to suspicious activity, avoid a bank arbitrarily refusing to complete a transfer, prevent merchants from suffering credit card reversals, and are a lifesaver for individuals whose bank account was closed without warning or reason (a problem frequently faced by adult performers). While on-chain stablecoin uses are mostly limited to Decentralized Finance (DeFi) applications, this will change as retailers and banks begin accepting stablecoin payments.
On Sept. 20, Robinhood listed Circle’s USDC stablecoin on its platform with support for withdrawals to Ethereum and Polygon crypto wallets. Robinhood chose USDC due to its stellar reputation and regulatory compliance, as opposed to Tether’s USDT, which…
