Robinhood in a ‘much better position’ than Coinbase in the long run amid crypto wallet plans: analyst Mizuho
Mizuho analyst Dan Dolev believes financial services firm Robinhood now has an edge over the Coinbase cryptocurrency exchange as part of plans to add crypto wallets to its trading app. actions.
Earlier this week, Robinhood announced that it would start testing crypto wallets in October.
In an interview with CNBC, Dolev says Robinhood is in a “much better position” in digital-only banking [neobank] run as Coinbase.
He cites Robinhood’s toll-free exchanges and high levels of user engagement to underpin his outlook.
“I think Robinhood is in a much better position. And the key thing about Robinhood, and it’s what people don’t fully understand, is that app engagement is way more important than engagement from any other app we’ve seen. Some people use it several times a day. Some people use it several times an hour.
It’s the ultimate super app, and they give everything Coinbase gives away for a fee, they give it away for free. And I think that’s why Robinhood is in a much better long-term position to become one of the leading next-gen neobanks compared to Coinbase. “
Dolev says that another advantage of Robinhood over Coinbase is its relatively diverse range of offerings.
“The key here is diversification. The more diverse 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 the crypto is located.
If you think of Robinhood, you’ve got the crypto, you’ve got stocks, and you’ve got the banking side, which is kind of like the future.
The key here is diversification and the ability to survive whether one area of the market is doing better or worse at any given time. “
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