Robinhood, an app-based brokerage founded in 2013, on Wednesday rolled out Clearing by Robinhood, a clearing system built and operated in-house.
The new system will enable Robinhood not only to clear and settle transactions, but also to custody assets for all of its 6 million customers by year-end, according to a blog post introducing it.
Robinhood said it had set out two years ago to build its own clearing system from scratch, an endeavor that involved a team of some 100 people, including specialists in clearing and compliance.
The Financial Industry Regulatory Authority, the Depository Trust & Clearing Corp. and the Options Clearing Corp. provided the necessary licenses.
According to the announcement, Clearing by Robinhood is the only clearing system built from scratch, and on modern technology, in the past decade. The last time a major brokerage built something similar was Vanguard, in 2008.
Earlier this year, Robinhood said that following a Series D funding round that garnered $363 million, its valuation was $5.6 billion.
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