Robinhood’s cryptocurrency trading division experienced an eight-fold increase in revenue from digital asset transactions in the last quarter of the previous year.
As per a recent report from Robinhood’s investment report, the popular trading app witnessed a 200% year-over-year surge in transaction-based revenues, largely attributed to cryptocurrencies.
“Total net revenues surged by 115% year-over-year to $1.01 billion.
Transaction-based revenues skyrocketed by over 200% year-over-year to $672 million, with significant contributions from cryptocurrency revenue of $358 million, a remarkable increase of over 700%, options revenue of $222 million, up by 83%, and equities revenue of $61 million, up by 144%.
Net interest revenues climbed by 25% year-over-year to $296 million, mainly driven by growth in interest-earning assets, offset to some extent by a lower federal funds rate.
Other revenues escalated by 31% year-over-year to $46 million, primarily due to increased Gold subscription revenues.”
According to a report by Reuters here, Robinhood’s recent foray into cryptocurrency cements its position as a key competitor for the leading US-based crypto exchange Coinbase.
Paul Marino, Chief Revenue Officer at Themes ETFs, comments on Robinhood’s success.
“The surge in revenues across Robinhood’s platform indicates not just a growing risk appetite in the market, but also the increasing adoption of its platform. The next generation of traders seem to prefer what Robinhood offers over its competitors.”
Coinbase is expected to release its quarterly earnings report later today.
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