“We started Cove Markets three years ago to help crypto investors get the most out of their trading experience,” said Scott Knudsen, CEO and Co-Founder of Cove Markets.
Cove Markets, an API platform that enables users to trade across multiple centralized exchanges and manage aggregate financial data, will become part of Robinhood Crypto, as announced by the discount brokerage late Tuesday. Traders and investors can connect up to seven exchanges, including Coinbase Pro, Kraken, Bitfinex, etc., using Cove Markets to trade over 50 major currencies and altcoins.
The two trading firms said they plan to increase the volume of order routing and execution on Robinhood with the acquisition. Christine Brown, chief operating officer of Robinhood Crypto, made the following remarks regarding the development:
The Cove Markets team’s wealth of experience in trading execution and crypto market infrastructure will help us to build more powerful trading capabilities, bringing the benefits of better competition in the crypto markets to our customers.
Thrilled to welcome the @CoveMarkets team to Robinhood! Their incredible experience in trading execution and crypto market infrastructure will help us to build an even better crypto platform for all our Robinhood crypto traders. https://t.co/m4Wnl9Ojv3
— Christine (Hall) Brown (@christine_hall) December 14, 2021
Robinhood has taken a sharp focus on the cryptocurrency industry in recent years. The day prior, it announced a partnership with blockchain analytics firm Chainalysis to provide data and tools for the rollout of its native crypto wallet. Currently, the waitlist for such a feature, which is expected to launch early next year, has grown to over 1.6 million. But its stock investors have had a tough year. Shares are down nearly 70% since August highs after the company’s IPO.