Popular trading app Robinhood has introduced a staking service for Solana (SOL) in Europe, which enables users to earn dividends or interest on their SOL holdings just for depositing and holding the token on the platform.
The launch of Robinhood’s Solana-staking product is accompanied by a bonus program for new customers as the no-fee app expands its crypto services in the European market. Additionally, they can earn a 10% bonus on their net purchases within their first 30 days on the platform, with bonuses paid out in USDC stablecoins.
The company also plans to introduce localized versions of its app for users in Italy, Poland, and Lithuania in the coming weeks.
“Robinhood Crypto customers in Europe can now stake their Solana holdings directly through the app, allowing them to earn rewards with the flexibility to unstake at any time,” the company stated.
“Since launching at the end of last year, our customers in Europe have told us loud and clear that they want an app that provides local language support and products that help them earn additional passive income,” said Johann Kerbrat, Vice President of Robinhood Crypto.
The new staking product allows Robinhood customers to stake Solana (SOL) and receive a 5% yield through the app. Competitors such as Kraken and Binance offer SOL staking with yields of up to 5% and 8%, respectively.
Stakers earn passive rewards from their holdings by supporting the network through transaction validation and securing network operations. Staking rewards can fluctuate based on network inflation, the amount of SOL staked, validators’ commission rates, and market conditions.
Alongside the SOL staking initiative, Robinhood is introducing local-language versions and educational content for users in Italy, Poland, and Lithuania. The educational content will focus on Bitcoin (BTC), USD Coin (USDC), and Avalanche (AVAX).
Robinhood reported a strong surge in crypto trading activity in the first quarter of 2024, with a 224% increase in trading volumes to $36 billion. Nearly 40% of its transaction-based revenue came from crypto-related services, leading to the company’s second consecutive profitable quarter with a net income of $157 million.
Despite the growing demand, Robinhood’s crypto business faces several challenges. On May 6, the company received a Wells notice from the U.S. Securities and Exchange Commission (SEC), indicating potential enforcement action against its crypto arm.
The SEC’s investigation focuses on Robinhood’s cryptocurrency listings and custodian operations for alleged securities violations. As a precaution, Robinhood does not offer staking services in the United States, nor does it list certain crypto tokens or provide lending services.
Read More: Robinhood launches Solana staking in Europe with 5% APY
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