Robinhood Markets reported a significant 98% year-on-year surge in its crypto-related revenue, reaching $160 million during the second quarter. This robust growth significantly contributed to the company’s overall performance, which saw total net revenue climb 45% to $989 million and net income more than double to $386 million.
CEO Vladimir Tenev attributed the strong crypto performance to Robinhood’s strategic push into the tokenization of alternative assets. The company aims to unlock access to these assets for retail investors globally, bolstered significantly by its recent $200 million acquisition of the European exchange Bitstamp.
Tenev emphasized Robinhood’s competitive strengths in this burgeoning market, highlighting its substantial user base of over 25 million customers in the US and custody of approximately $1 billion in assets. The company also leverages its proprietary layer 2 network for settlement.
Despite facing legal controversies, most notably concerning an OpenAI-related token offering, Robinhood reports continued strong developer interest across its platform. This indicates sustained demand within its ecosystem as tokenization gains momentum. Currently, Ethereum leads the tokenization sector with nearly $7 billion in real-world assets secured.
Looking ahead, Robinhood disclosed expansion plans to include the tokenization of venture capital funds and real estate assets, aiming to further capitalize on the alternative assets market.