Despite US SEC regulatory strain, commission-free crypto brokerage firm Robinhood Markets Inc has reported its third quarter performance report with its crypto unit shining strong. After a very promising quarter in a competitive market, the firm said it grew its overall Year-to-Date (YTD) Net Deposits to $34 billion.
Robinhood and the Crypto Boom
According to the firm’s earnings release, the third quarter marked its second best for revenues on record. The firm said it bagged a 36% year-over-year revenue growth to $637 million with its crypto unit playing a significant role.
As the firm noted, its crypto revenue shot up by 165% to $61 million over the quarter. This performance is not unexpected for Robinhood as it completed the acquisition of Bitstamp earlier, thus boosting its overall volume.
The Robinhood performance outlook is a rare one for this year, considering its previous strain with FTX exposure. The company bought back its shares from Alameda Research in a $605 million deal last year. At the time, many thought the firm will shun crypto moving forward. On the contrary, the Robinhood Crypto unit became one of its key strongholds.
For the third quarter, its Assets Under Custody (AUC) jumped 76% year-over-year to $152.2 billion. The firm said this figure got the boost on record based on sustained net deposits, higher equity and crypto valuation.
As a Bitcoin dependent firm, the Robinhood Crypto offshoot has benefitted immensely from the market outlook. With Bitcoin almost retesting its ATH recently, chances are the brokerage will print even a higher volume this fourth quarter.
The Issue With US SEC Regulation
It is worth noting that Robinhood faced a regulatory scare in the United States. In May, the securities and Exchange Commission (SEC) issued the firm a Wells Notice. The regulator noted that some of its crypto services are violating Federal securities laws and may attract a suit. Notably, the US SEC has not filed any suit to date and Robinhood has continued its business as usual.
However, the firm became more tactical in its product bandwidth. As reported earlier by Coingape, it has been listing many tokens lately and enabling transfers for assets like Solana (SOL). Despite the positive move, access was restricted only to its customers in the European Union.
Read More: Coinbase Misses Q3 Estimates, Cites Market Weakness
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Leave a Reply