Robinhood Poised to Launch Crypto Trading in Europe

Robinhood’s quarterly monetary report is in – with barely disappointing information for shareholders however very attention-grabbing information for patrons primarily based within the EU.

Dip in Income Since Final Quarter

In line with the report, Robinhood’s revenues for the third quarter of 2023 added as much as a complete of $467 million, a 4% lower in earnings from the previous quarter. General, Robinhood misplaced $85 million in Q3, leading to a per-share lack of 9 cents.

Robinhood’s crypto division, nonetheless, tells a barely totally different story.

Though the quantity of crypto stashed on behalf of consumers decreased by roughly 11% since final quarter, the present determine of $10.2 billion nonetheless represents a 9% year-over-year improve since Q3 of 2022, when crypto winter was nonetheless in full swing and investor warning was operating excessive.

Regardless of declining revenues – and the hard decisions sparked by the favored buying and selling platform’s monetary scenario – Robinhood CEO Vlad Tenev continues to organize for additional growth.

“Trying forward, we stay centered on offering industry-leading merchandise that serve much more of consumers’ monetary wants, gaining market share, increasing internationally, and persevering with to vary the {industry} for the higher. […] We’re centered on utilizing this (scenario) as a possibility to construct our capabilities to construct our platform.”

Certainly one of these expansions is Robinhood’s deliberate enabling of crypto buying and selling within the European Union, which is coming “inside the subsequent few weeks.”

Higher Regulatory Surroundings

Up till now, crypto buying and selling on Robinhood was solely attainable within the U.S. Nevertheless, only a few months after the agency introduced plans to acquire firms within the UK forward of a scheduled growth overseas, Robinhood will probably be bringing crypto buying and selling capabilities to Europe.

In line with Tenev, the regulatory setting in Europe permits for a unique set of belongings than these accessible within the U.S. – a attainable reference to the choice to delist ADA, SOL, and MATIC after the SEC sued Binance and Coinbase for permitting stated tokens to be traded, believing them to be unregistered securities.

“Regulatory readability (within the EU) will permit Robinhood to supply a unique set of belongings in contrast with the U.S. It could be a disgrace if innovation within the cryptocurrency market had been coopted abroad.”

Ark Make investments, eToro, and Galaxy Digital additionally introduced plans to pivot in the direction of Europe in latest months, because the SEC continues to sue firms it deems in violation of American monetary regulation.