Robinhood Markets reported a 700% surge in cryptocurrency buying and selling income within the fourth quarter, serving to the retail brokerage put up document profitability as digital asset volumes rebounded.
Crypto income reached $358 million, up from $45 million a 12 months earlier, accounting for greater than one-third of complete transaction-based income, which rose over 200% to $672 million.
The buying and selling increase pushed complete This autumn income up 115% year-over-year to $1.01 billion, whereas internet earnings soared greater than tenfold to $916 million, in keeping with the corporate’s newest figures.
Robinhood is deepening its presence in crypto, saying in June a deal to accumulate Bitstamp for $200 million, one of many world’s oldest crypto exchanges, in a transfer to develop its worldwide footprint.
The corporate additionally rolled out Ethereum staking within the EU and listed seven new tokens within the U.S. final quarter. That determine is anticipated to “speed up” this 12 months, CEO Vladimir Tenev stated within the firm’s earnings name on Wednesday.
“What I’m maybe most enthusiastic about is tokenization,” Tenev stated, referring to a sector of the crypto financial system that seeks to put real-world property on-chain in a bid to spice up effectivity and streamline liquidity.
“I feel Robinhood is uniquely positioned on the intersection of conventional finance and DeFi,” Tenev stated, referring to the corporate’s plans to tokenize equities, non-public funding, and “extra.”
The sector, which grew 52% final 12 months to $12 billion, excluding stablecoins, is anticipated to proceed to swell, with some projections forecasting $50 billion this 12 months.
The resurgence in crypto buying and selling comes amid a broad market restoration, with Bitcoin (BTC) greater than doubling in 2024 earlier than surpassing $100,000 in late December, whereas Ethereum (ETH) gained 71.5% final 12 months.
Consequently, Robinhood’s crypto notional buying and selling quantity surged over 400% to $71 billion within the quarter, reflecting elevated exercise as buyers sought to capitalize on shifting macro tailwinds within the type of U.S. crypto exchange-traded funds and a altering political panorama underneath President Donald Trump.
Past crypto, Robinhood is betting on worldwide progress and product growth, together with plans to launch in Asia-Pacific in 2025 with Singapore as its regional hub.
The agency can be increasing its choices and futures buying and selling merchandise, focusing on lively merchants.
Property underneath custody (AUC) jumped 88% to $193 billion, fueled by $16 billion in internet deposits through the quarter. Robinhood additionally reported 2.6 million Gold subscribers, up 86% year-over-year.
Shares of Robinhood have rallied over 365% prior to now 12 months, pushed by its return to profitability and a surge in buying and selling exercise, notably in crypto.
Shares have been up 4.8% to $55.91 by the closing bell and an extra 17% to $65.45 in after-hours buying and selling.
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