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Despite some setbacks, Robinhood remains committed to the crypto sector.
investment app Robin Hood The third quarter of 2023 saw a further decline in its crypto trading revenues. While the company’s net profit rose 29% year-over-year to $467 million, its transaction-based income declined.
According to quarterly reportCrypto trading revenue fell 55% to $23 million. Losses for crypto-based transactions on the app continue to decline. Recall that there was a 1% loss in the first quarter of 2023 and a further 18% decline in the second quarter.
This was not the only decline in crypto trading yields. While revenue from options trading remained unchanged at $127 million, yield from equities also declined 13% to $27 million.
What is causing the decline in crypto trading revenues?
The slowdown in crypto trading volumes on Robinhood may be due to the company’s decision to delist tokens designated as securities at the SEC. lawsuits Against Binance and Coinbase. As a result, the platform now offers only fifteen cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Dogecoin (Doge), and Avalanche (AVAX).
According to Chief Financial Officer Jason Warnick, more regulatory clarity about crypto will help Robinhood “innovate even faster.”
Meanwhile, Robinhood isn’t the only one that has seen a decline in crypto trading profits. Coinbase also reported a loss in transaction revenue, citing lower volatility and the broader “macro backdrop” as the reasons. Coinbase reported a 12% decline in transaction volume in its third quarter report.
Robinhood shares future development plans
Despite these setbacks, Robinhood Markets Inc. (NASDAQ: HOOD) remains committed to the crypto space. The company announced plans to launch EU crypto trading in the coming weeks.
“With an experienced team, we will soon launch brokerage operations in the UK. As a further step in global expansion, we also plan to launch crypto trading in the EU following our launch in the UK,” the company informed.
The announcement follows the withdrawal of some crypto firms from the UK market to comply with new regulations introduced on October 8. These rules force crypto firms to provide clear risk labels and implement system changes.
Again, Robinhood is considering launching futures trading at some point. It says, “Our goal is to bring the seamless mobile experience that customers have come to know from Robinhood to the industry.”
Vlad Tenev, CEO and co-founder of Robinhood Markets, commented on the company’s commitment to providing industry-leading products. “We are focused on providing industry-leading products that better meet customers’ financial needs, gaining market share, expanding internationally and continuing to change the industry for the better,” he said. Are.”
An experienced writer with practical experience in the fintech industry. When he is not writing, he spends his time reading, researching, or teaching.
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