Robinhood Markets, the company behind the popular stock trading app of the same name, is set to receive a capital injection valuing it at around $5.6 billion, The Wall Street Journal reported Thursday, citing sources familiar with the matter.
A group of investors led by Russian firm DST Global are close to finalizing an investment of about $350 million in the Palo Alto-based start-up, the Journal said, according to sources.
Robinhood declined to comment to CNBC.com. DST Global, which is headquartered in Hong Kong, did not immediately return a request for comment.
A $5.6 billion valuation would more than quadruple Robinhood's size and make the start-up worth just over a third of online brokerage E*Trade. In April 2017, DST led a $110 million funding round in Robinhood that valued the company at $1.3 billion.
Robinhood launched its commission-free stock trading app about three years ago. Last month, the company began rolling out trading of cryptocurrencies bitcoin and ethereum in five states through "Robinhood Crypto." The stock and cryptocurrency products combined now have more than 4 million users, which overwhelmingly fall into the "millennial" age category of roughly 18 to 35-year-olds.
Robinhood Financial and Robinhood Crypto are wholly-owned subsidiaries of Robinhood Markets, according to the company's website.
Coinbase, the leading U.S. marketplace for buying and selling major cryptocurrencies, has more than 10 million users and had a valuation of $1.6 billion in August.