On April 28, discount-brokerage platform Robinhood published its financial results for the first quarter of 2022. Year over year, the firm’s net revenue declined 43% to $299 million. Notably, revenue from cryptocurrency trading fell 39% to $54 million during the same period. This was partly due to the lack of interest in meme stocks as well as the ongoing crypto bear market that dominated much of the first three months of the year.
However, despite the decrease in sales, the company’s net cumulative funded accounts grew 27% year over year to 22.8 million. At the same time, total assets in custody increased by 15% to $93.1 billion. Robinhood took several important steps to grow its crypto business. First, the firm launched a crypto wallet to nearly two million wait-listed customers in early April, and a full roll-out was completed this week.
Then, in response to customer requests, Robinhood listed four new coins; Compound (COMP), Polygon (MATIC), Solana (SOL), and Shiba Inu (SHIB). Finally, Robinhood plans to integrate with the Lightning Network, a layer-2 bitcoin (BTC) payment protocol, for faster transactions with lower fees. As Robinhood pointed out:
“Once fully integrated, we expect this service to help accelerate Robinhood’s ability to serve bitcoin remittances globally – virtually at no cost – and critical to international expansion.” Will be.”
This month, Robinhood signed an agreement to acquire Ziglu UK-based electronic money institution and crypto firm as part of its roadmap. Robinhood plans to leverage Ziglu’s team of financial services and crypto experts to help the company expand into the UK and Europe.
