Retail Broker Robinhood Ends Partnership with Jump Trading in Crypto Market
Robinhood Markets Inc., the retail broker that entered the crypto market with the help of Jump Trading, has reportedly stopped doing business with the firm. The split between Robinhood and Jump occurred in early July, according to on-chain data. The reason for the split is unknown, but it may be related to Jump’s withdrawal from the US market due to increased regulatory scrutiny. Robinhood now works with other market-making firms, such as B2C2, to handle its crypto flow.
Key Points:
- Robinhood and Jump Trading have ended their business partnership in the crypto market.
- The split occurred in early July, according to on-chain data.
- Jump Trading is reportedly backing away from the US market due to regulatory scrutiny.
- Robinhood now works with competing market-making firms, including B2C2.
- The reason for the split between Robinhood and Jump is unclear.
Hot Take:
Robinhood’s decision to end its partnership with Jump Trading in the crypto market could be a result of the regulatory crackdown on the industry. As traditional financial players face increased scrutiny, they may be hesitant to continue their involvement in the crypto space. This move highlights the challenges faced by retail brokers like Robinhood in maintaining reliable market-making services to support their crypto businesses. It remains to be seen how this change will impact Robinhood’s operations and its relationship with other market-making firms.
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