Robinhood targets EU for cryptocurrency trading growth amid third-quarter revenue shortfall
Robinhood, the financial technology company known for its trading app, announced plans to launch its cryptocurrency trading services in the European Union and launch brokerage operations in the United Kingdom after mixed financial performance in the third quarter .
Robinhood has announced plans to expand its horizons. The trading platform, primarily recognized for its role in democratizing stock trading, is set to expand its cryptocurrency trading services beyond the United States to encompass the European market, with an impending venture into the brokerage industry in the United Kingdom.
The strategic move was revealed in Robinhood’s third-quarter earnings report, which also highlights the fintech company’s plans to roll out its cryptocurrency trading arm in the European Union after gaining a foothold in United Kingdom. Currently, Robinhood’s crypto services are US-centric and offer trading in popular cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin.
However, it is worth noting that Robinhood took a conservative turn in June, dropping support for cryptocurrencies like Solana, Polygon, and Cardano. The move follows increased scrutiny of Coinbase and Binance by the SEC, with allegations that certain crypto assets were unregistered securities.
The expansion news lags behind Robinhood’s third-quarter financial disclosure, which saw its shares fall about 10% after the announcement, reflecting a cautious response from investors. This after-hours drop from $9.76 to $8.82 per share reflects the challenges the company faced from a significant drop in crypto trading volume, leading to a sharp 55% drop in revenue. cryptography.
Despite a 29% year-over-year increase in net revenue, results fell short of expectations, further fueling bearish sentiment among market observers. Still, Robinhood stock showed some resilience, adjusting to $9.02 per share amid a more upbeat premarket trading environment.
Co-founder and CEO Vlad Tenev reiterates the company’s commitment to innovation and customer value, highlighting enhancements to Robinhood Gold and the introduction of IRA contribution matching.
