Monday, February 26, 2024

Robinhood makes significant strides in crypto business in Q1 despite falling revenue



On April 28, discount-brokerage platform Robinhood printed its monetary outcomes for the primary quarter of 2022. Yr-over-year, the agency’s internet revenue declined by 43% to $299 million. Particularly, revenue from cryptocurrency buying and selling fell by 39% to $54 million throughout the identical interval. This was partly on account of a lower in the curiosity in meme shares in addition to an ongoing cryptocurrency bear market that dominated a lot of the primary three months of the 12 months.

Nonetheless, despite a lower in gross sales, the corporate’s internet cumulative funded accounts rose by 27% year-over-year to 22.8 million. On the identical time, complete belongings underneath custody elevated 15% to $93.1 billion. Robinhood took a number of essential steps in enhancing its crypto business. First, the agency rolled out crypto wallets to the roughly two million waitlisted clients in early April, with a full roll-out accomplished this week.

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Then, in response to buyer requests, Robinhood listed 4 new cash; Compound (COMP), Polygon (MATIC), Solana (SOL) and Shiba Inu (SHIB). Lastly, Robinhood plans to combine with layer-2 Bitcoin (BTC) fee protocol Lightning Community for quicker transactions with decrease charges. As instructed by Robinhood:

“As soon as absolutely built-in, we count on the service to assist speed up Robinhood’s capacity to serve Bitcoin remittances on a world scale — at just about no price — and might be essential for worldwide enlargement.”

This month, Robinhood signed an settlement to amass Ziglu, a UK-based digital cash establishment and crypto agency, as a part of its roadmap. Robinhood plans to leverage Ziglu’s crew of economic companies and crypto consultants to assist the corporate increase throughout the UK and Europe.