The investing and banking app Stash announced today that it’s launched a crypto platform for its 2 million active subscribers, providing them with access to eight coins, including Bitcoin, Ether, Avalanche, and Solana.
While retail investing apps have exploded over the past few years, including a spate of zero-commission-trade features, co-founder and president Ed Robinson said Stash distinguishes itself by prioritizing long-term wealth building, not trading. Stash was founded in 2015 and has received over $400 million in funding from investors including T. Rowe Price and LendingTree.
Stash focuses on what Robinson describes as “everyday Americans,” or people looking to invest smaller amounts of money and who aren’t prioritized by large brokerage firms. The average Stash customer has a household income of $50,000 to $75,000, the average portfolio size is around $1,100, and most customers start with a deposit of around $20. Through its multi-tiered subscription system, Stash offers financial tools and education that help users decide on long-term strategies that work with smaller sums. It currently has over $3 billion in assets under management.
Robinson said that based on internal data, more than 60% of Stash customers wanted access to crypto investments. He’s hoping to take the same slow-and-steady approach to what he acknowledges is a highly volatile market.
“Crypto trading is absolutely crucifying everyday Americans,” Robinson told Fortune. “People get caught up in trading apps and lose their money because they’re trying to time the market—they need education, guidance, and advice on how to get started.”
He argued that despite the risks, crypto is a good way to diversify portfolios, as long as users invest safely. Stash recommends customers don’t place more than 6% of their total assets in different cryptocurrencies, and warns customers during purchases if they are over-indexed in any particular asset.
In its initial offering of cryptocurrencies, Stash isn’t offering meme coins. “Our customers are literally living paycheck to paycheck—is it smart for them to be throwing money into Shiba?” Robinson said. “What we do want to do is get them exposed [to crypto] and get them to start understanding their risk tolerances and what’s actually happening in the market.”
Despite the market downturn, Robinson argued that now is a good time to be launching the new offering, given Stash’s philosophy of long-term investing.
“A pullback of a couple months or six months or even a year is short when you think about the duration of your life and the number of cycles that will occur,” said Robinson.
Leo Schwartz
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