Robinhood’s Plan to Launch Cryptocurrency Trading in Europe
Robinhood, a popular online brokerage platform, has revealed its intention to introduce cryptocurrency trading in the European Union “in the coming weeks,” as stated in its third-quarter earnings report.
Decrease in Crypto Trading Revenue
The company’s reports indicate a decline in cryptocurrency trading revenue for the third quarter of 2023. Despite the expansion plans, Robinhood’s crypto revenue dropped by 26% from the previous quarter to $23 million. Additionally, there was a 55% decrease in year-over-year crypto revenue, down to $51 million in 2022. The number of crypto assets held on behalf of customers also decreased by approximately 11% from the previous quarter to $10.2 billion. This led to a drop in Robinhood’s share price by as much as 7.5% in after-market trading.
“Looking ahead, we remain focused on providing industry-leading products that serve far more of customers’ financial needs, gaining market share, expanding internationally, and continuing to change the industry for the better,” Vlad Tenev, CEO and cofounder, said in a statement.”
Expansion of Crypto Trading in Europe
Despite the decline in revenue from crypto trading, Robinhood is planning to expand its cryptocurrency trading into Europe. The company previously announced its expansion into the U.K. earlier this year and aims to further penetrate the European market.
Regulatory Obstacles and Market Changes
Recent reports suggest that Robinhood has delisted tokens from its crypto trading platform as it seeks to distance itself from certain market makers. The decision follows increased scrutiny from the SEC over one of the largest providers of liquidity to the crypto market. Despite these challenges, CEO Vlad Tenev remains optimistic about the crypto market and sees expansion into Europe as an opportunity to offer new assets to users.
Hot Take: Challenges and Opportunities for Robinhood
Robinhood’s plan to launch cryptocurrency trading in Europe comes at a time when its crypto revenue has faced significant declines. Despite regulatory obstacles and changes within the market, the company remains committed to expanding its presence globally and offering innovative products to users.
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