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In an email to customers, Robinhood revealed<\/a> it is now using investment bank JPMorgan to process its transactions.<\/p>\n\n\n\n Robinhood, the free-trading app, has switched to JPMorgan from Sutton Bank, an Ohio-based community lender that has just eight branches. JPMorgan meanwhile is the biggest US bank by assets. <\/p>\n\n\n\n In its email to customers, Robinhood said the move to JPMorgan \u201cis part of a larger effort to make a more consistent and reliable experience, and it will enhance our ability to meet your cash management needs.\u201d The switch comes as Robinhood prepares to roll out an IPO<\/a>, which the app is likely to make in the second quarter of this year. <\/p>\n\n\n\n Robinhood’s IPO timing \u2014\u00a0and the timing of its switch from community lender to massive US bank \u2014 comes on the heels of rapid user growth for the app, driven part by a surge in “meme stocks” buyers earlier this year. <\/p>\n\n\n\n The company now currently counts 13 million users and generated $331 million in payments during the first three months of 2021. Robinhood is currently valued at $11.7 billion, but according to Bloomberg, trading of private shares indicates the company could be valued as high as\u00a0$40 billion\u00a0in its upcoming IPO. <\/p>\n\n\n\n While JPMorgan provides processing services to Robinhood, the bank remains one of Robinhood’s competitors, as it also offers unlimited free trades via its mobile app. <\/p>\n\n\n\n The choice of JPMorgan for Robinhood adds another strong partnership to the investment bank’s roster of digital-first tools and innovations, demonstrating JPMorgan’s commitment to tech-driven competitiveness. The bank launched a blockchain unit<\/a> as well as its own cryptocurrency, JPCoin, in October of last year, the same month it introduced an innovative new program that allows businesses to exchange loyalty points for standardized currencies<\/a>. And in January, JPMorgan made a $100 million investment in Figure<\/a>, a fintech-focused on blockchain mortgages and QR code payments.<\/p>\n","protected":false},"excerpt":{"rendered":" Need to Know Robinhood announced it is now using JPMorgan to process transactions for cash management accounts. The news comes as Robinhood, the free-trading app, prepares to make an IPO, likely in Q2 of 2021. Robinhood had previously used Sutton Bank, an Ohio-based community lender with just eight branches. Robinhood, which generated a record-setting $331 […]<\/p>\n","protected":false},"author":76318,"featured_media":111188,"menu_order":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,3414],"tags":[3431],"magazine-region":[],"magazine-series":[],"magazine-topic":[3674,3677],"class_list":["post-124177","magazine","type-magazine","status-publish","has-post-thumbnail","hentry","category-News","category-technology-News","tag-robinhood","magazine-topic-data","magazine-topic-technology"],"acf":[],"_links":{"self":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine\/124177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine"}],"about":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/types\/magazine"}],"author":[{"embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/users\/76318"}],"version-history":[{"count":1,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine\/124177\/revisions"}],"predecessor-version":[{"id":124945,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine\/124177\/revisions\/124945"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/media\/111188"}],"wp:attachment":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/media?parent=124177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/categories?post=124177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/tags?post=124177"},{"taxonomy":"magazine-region","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine-region?post=124177"},{"taxonomy":"magazine-series","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine-series?post=124177"},{"taxonomy":"magazine-topic","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine-topic?post=124177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}