Robinhood has introduced Solana staking for users

Robinhood has introduced Solana staking for users in Europe, allowing them to earn rewards while holding their crypto. This move comes as a response to the growing demand from European users for passive income opportunities in the crypto market. While Robinhood's Solana staking offers an Annual Percentage Yield (APY) of about 5%, it falls slightly behind Coinbase's 5.42% APY. However, another platform, Phantom Wallet, offers an even higher APY of 7.58% for Solana staking.

Staking involves locking up cryptocurrency to support blockchain networks and earning rewards in return. With Robinhood's new feature, investors can use their Solana holdings to earn rewards directly in the app, giving them more control over their investment strategies.

Johann Kerbrat, VP and GM of Robinhood Crypto, mentioned that this initiative was driven by feedback from European customers who wanted localized language support and opportunities for passive income through crypto holdings. In response, Robinhood Crypto introduced several new features tailored to its European users, including localized apps, crypto rewards for new users, and updated educational content.

The decision to launch Solana staking first was influenced by the popularity of the SOL token among EU users. Compared to Ethereum, staking on Solana is simpler and has a shorter bonding period for newly-staked assets to start earning yield.

While Robinhood's US operations face scrutiny from the SEC, its European operations operate under a separate business model and remain free from such issues. This highlights Robinhood's commitment to regional compliance while serving its European customers.