Robinhood’s cryptocurrency revenue falls 12% in Q3 2022

In the third quarter of 2022, Robinhood’s online-broker revenue from digital-asset-related activities fell 12%, to $51 million. The company said this in a report published on November 2.

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For the previous reporting period, the figure was $58 million. The decline in revenue from crypto-related activities at Robinhood was, among other things, explained by a drop in the monthly number of active users (down 12% quarter-over-quarter) and a decrease in trading volume (down 24%).

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According to the document, as of September 30, the value of the broker’s assets tied to the “obligation to safeguard users’ cryptocurrencies” stands at $9.36 billion.

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During an investor call, the head of the company, Vlad Tenev stated that, despite the decline in revenue from the digital-asset-related business, Robinhood “will continue to thoughtfully and prudently bring new coins to the market.”

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The CEO stressed that the online broker aims to become a “global” platform, and cryptocurrencies are “an important part of this process”.

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“We will gladly continue investing in them [in digital assets]. We have made a ton of investments in the past year, even despite the crypto-winter. […] There is a lot of work ahead for investments and the implementation of innovations in the field of cryptocurrencies, as well as in terms of expanding international activity,” he said.

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Tenev also called it “quite likely” that Robinhood will add the ability to store and view NFTs on its platform. The head of the company noted that trading non-fungible tokens in the app is “difficult” due to Apple’s recent initiative.

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Back in September 2022, the online broker released a beta version of a non-custodial Web3-wallet.

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