Robinhood rules out takeover of online broker by FTX exchange

The online broker Robinhood is in a strong position as an independent company, and therefore does not consider the possibility of being acquired by the cryptocurrency exchange FTX or by competitor Charles Schwab. This was stated by the firm’s CEO Vlad Tenev.

“We have a strong balance sheet. We have an amazing team […], we are delivering the product roadmap at unprecedented speeds. So I would turn the question 180 degrees,” the top executive explained.

During a conference with analysts, Tenev noted that as of June 30 the company had $6 billion in cash and cash equivalents. Robinhood could deploy the money toward acquisitions of startups capable of accelerating the execution of its long-term plans.

The CEO highlighted the creation of a non-custodial Web3 wallet, which will give users full control over their cryptocurrency and direct access to DeFi and NFT segments.

Over the course of the year, Robinhood’s clients will receive a standalone app with the ability to trade, exchange and store digital assets without network fees. According to Tenev, the number of users on the waitlist continues to grow.

Separately, the head of the company touched on the topic of listing crypto assets on the platform. In his view, a conservative approach to this issue will pay off in the long run. He noted the SEC‘s close attention to the admission by competitors of assets that the regulator treats as unregistered securities.

Earlier, Robinhood announced a 23% staff reduction. In the second-quarter results, the company posted a net loss per share of $0.34 as monthly active users declined by 1.9 million to 14 million.

Earlier, the New York state Department of Financial Services fined the online broker’s cryptocurrency arm $30 million for violations of AML rules and cybersecurity policy.

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