Robinhood looks to beef up crypto offering after Q4 revenue slide
January 27, 2022, 5:10PM EST
1 min read
Crypto and equities trading platform Robinhood is looking to expand its crypto offerings, despite missing revenue targets for Q1 2022 and posting a decline in crypto transaction-based revenue.
Robinhood posted its fourth quarter earnings today, reporting total revenues of $363 million. Though that's an increase compared to Q4 2020, Robinhood's projections for Q1 2022 are falling short of Wall Street's expectations. The firm expects to rake in $340 million, considerably less than the projected $448.2 million.
In Q4 2021, crypto saw a mild decline in its share of the firm's transaction-based revenue. Crypto made up 18.18% of the firm's transaction-based revenue, down from 19.1% the previous quarter.
Crypto transaction-based revenues increased by 304% compared to Q4 2020, clocking in at $48 million, but were considerably less than the highs of Q2 2021. The firm's crypto activity has declined since then.
Still, the firm is looking to grow its crypto offerings in 2022, eyeing a Q1 release of its crypto wallet and making plans to launch its own crypto platform some time this year. It plans to focus on the international expansion of those offerings.
"Robinhood has set aggressive goals to start opening its crypto platform up to customers internationally in 2022," said the firm in its report. "The company believes in the immense potential of the crypto economy and sees a big opportunity in serving customers across the globe."
As cryptocurrencies become increasingly mainstream, regulators, the media and policymakers are paying more attention to the financial crime risks associated with them. But what are the biggest compliance challenges crypto firms face, and what does a best practice AML program look like?
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
TRON DAO has announced the launch of a $10 million incentive fund in light of recent events to support Terra developers migrating to the TRON ecosystem, including TRON’s EVM compatible cross-chain solution BitTorrent Chain (BTTC), which helps facilitate the seamless transfer of assets across mainstream public chains, including TRON, Ethereum, and BNB Chain.