Robinhood’s cryptocurrency revenue soars by 232% despite upcoming SEC conflict.

Robinhood’s cryptocurrency revenue soars by 232% despite upcoming SEC conflict.

Robinhood, the popular retail trading platform, has reported a significant increase in its crypto revenue for the first quarter. The company’s earnings were driven by higher interest rates and strong cryptocurrency trading activity. Total net revenue rose by 40% year-over-year to $618 million, with transaction-based revenues increasing by 59% to $329 million. The surge in cryptocurrency revenue accounted for a 232% jump to $126 million. Additionally, Robinhood’s Assets Under Custody grew by 65% to $129.6 billion, fueled by higher valuations in equity and cryptocurrency. The platform also experienced a 224% increase in Crypto Notional Trading Volumes to $36.0 billion. While Robinhood celebrated its successful quarter, it faces potential enforcement action from the SEC, which alleges that some of the cryptocurrencies offered on its platform are securities. In response, Robinhood expressed disappointment and stated its belief that the listed assets do not qualify as securities. The company is prepared to contest the matter in court to defend its crypto business and establish regulatory clarity in the United States.

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