Fee-free stock and cryptocurrency trading platform Robinhood is preparing to launch an IPO
In its latest round of fundraising, the fintech company was valued at US$5.6bn.
CNBC said that Robinhood’s userbase figures took the lead over rival firm E-Trade Financial in May, reaching 5mn brokerage accounts.
Robinhood’s userbase is largely comprised of investors aged 18-35, CNBC added.
JPMorgan launched its own zero-free platform to compete with Robinhood in the hope of also appealing to young investors.
Of the IPO, Baiju Bhatt, the firm’s CEO, said: “It’s something we think is very much in the future. Being a public company closely aligns with our mission. Not in the immediate term, but it’s something we’re thinking about”.
To that end, Robinhood is seeking a CFO to carry this strategy forward and is currently the subject of audits from US regulators.
The fintech app has seen investment from DST Global, Iconiq, and Capital G, Google’s venture capital fund.
Moving forward, Robinhood’s company executives have made it clear that they hope to expand Robinhood’s capabilities and become a fully-fledged financial services company.
Vlad Tenev, co-founder of the platform, told CNBC: “We have an ambitious long-term vision to become a full-service financial services company over the next couple of years”.