- Robinhood holds $11.5 billion in user crypto assets
- They removed the altcoins after SEC announced they were securities
- Robinhood turned a profit in the second quarter of 2023
Robinhood released its financial results for Q2/23, which show its crypto trading revenue declined by around 18% from the previous quarter. More than a month ago, Robinhood decided to delist Polygon (MATIC), Solana (SOL), and Cardano (ADA) against the backdrop of the SEC’s lawsuits against Coinbase and Binance, the Bitcoinist reminded.
15 cryptos are now available on app
Robinhood customers could trade 18 cryptos on the platform before it delisted SOL, ADA, and MATIC. Robinhood is also well-known for stock trading. Although it only has 15 cryptos now, Robinhood holds $11.5 billion in user crypto assets.
Crypto trading revenue down to $31M
According to its most recent financial report, Robinhood’s trade-based revenues dropped 7%, with crypto declining to $31 million. This is down from $38 million in the previous quarter.
SEC identified the altcoins as securities
It is possible that delisting the high market cap altcoins in the middle of the second quarter contributed to the decline in crypto trading volume.
The platform removed these altcoins at the end of June, after SEC announced they were securities in its legal proceedings against the leading cryptocurrency exchanges. Hopefully, Robinhood is off the hook. In February, it emerged they had received an investigative subpoena from the regulator soon after FTX declared bankruptcy.
New York-based digital asset exchange Bakkt also delisted the three altcoins. Coinbase and Binance both refuted the watchdog’s claims and still offer MATIC, SOL, and ADA for trading.
Company’s net revenue is up 10%
Robinhood turned a profit in the second quarter even though it lost crypto trading revenue. Its total net revenue reached $486 million, up 10% from the previous quarter. Its net interest revenue is up 13% to $234 million.
The platform recorded total net income of $25 million. After a net deposit of $4.1 billion, its Assets Under Custody (AUC) grew by 13% from the previous quarter, reaching $89 billion. These are very positive results considering that Robinhood experienced a net loss of $511 million in the first quarter of this year.
