Trading platform Robinhood Markets Inc HOOD revealed a first-quarter notional cryptocurrency trading volume of $36 billion, a more than three-fold boost year-over-year.
What Occurred: The rise in volumes assisted enhance cryptocurrency-related earnings to $126 million, up 232% year-over-year. According to the business, the cryptocurrency arm played a crucial function in driving overall transaction-based earnings to $329 million, up 59% over the exact same duration in 2015.
The company reported $26 billion worth of cryptocurrencies under custody since March 31, marking a 78% dive quarter-over-quarter.
The business’s cryptocurrency arm, Robinhood Crypto, permits users to sell popular coins such as Bitcoin ( CRYPTO: BTC), Ethereum ( CRYPTO: ETH), Dogecoin ( CRYPTO: DOGE), and others.
Why It Matters: The outstanding numbers from Robinhood’s cryptocurrency vertical come regardless of growing regulative hostilities in the U.S. The company was subpoenaed by the SEC over its cryptocurrency listings, platform operations, and security in February.
More just recently, the business revealed getting slapped with a Wells Notification from the regulator, a start to a most likely enforcement action.
Reacting to concerns on the Well Notification throughout the incomes call, CEO Vlad Tenev described it as a frustrating advancement, stating “We securely think U.S. customers ought to have access to this possession class. They are worthy of to be on equivalent footing with individuals all over the world.”
The magnate specified that the company would safeguard itself from any possible legal action.
Chief Financial Officer Jason Warnick assured customers that their accounts were not impacted due to the Wells Notification, calling it “service as typical” for Robinhood Crypto.
Rate Action: Robinhood stock was up 4.20% to $18.60 in after-hours trading since 7:59 p.m. EDT.
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