Robinhood, the fintech company best known for its trading app, announced plans to launch cryptocurrency trading services in the European Union and launch a brokerage business in the United Kingdom after mixed financial results in the third quarter.
Robin Hood has Announce Plan to broaden your horizons. The trading platform, recognized primarily for its role in democratizing stock trading, is set to take its cryptocurrency trading services out of the United States and into European markets, with an upcoming foray into the UK brokerage space.
Robinhood unveiled the strategic move in its third-quarter earnings report, which also noted that the fintech company intends to launch its cryptocurrency trading unit in the European Union after establishing a foothold in the United Kingdom. Currently, Robinhood’s cryptocurrency services are U.S.-focused, offering trading in popular cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin.
However, it is worth noting that Robinhood took a conservative approach in June, dropping support for cryptocurrencies such as Solana, Polygon, and Cardano. The decision follows an SEC review of Coinbase and Binance, alleging that certain crypto assets are unregistered securities.
News of the expansion lagged Robinhood’s third-quarter financial disclosure, which showed its share It fell about 10% after the announcement, reflecting cautious investor reaction. The price per share fell from $9.76 to $8.82 in after-hours trading, reflecting the challenges the company faced as cryptocurrency trading volumes fell sharply, leading to a 55% drop in cryptocurrency revenue.
Although net income increased 29% year-on-year, the performance fell short of expectations, further exacerbating the bearish sentiment among market observers. Still, Robinhood stock showed some resilience, adjusting to $9.02 a share in a more upbeat pre-market trading environment.
Co-founder and CEO Vlad Tenev reiterated the company’s commitment to innovation and customer value, highlighting the enhancements to Robinhood Gold and the introduction of IRA contribution matching.