US Robinhood 1Q earnings report Decrease in cryptocurrency trading revenue


Cryptocurrency revenue down year-on-year

Robinhood, a major US investment app, announced on the 10th its financial results for the first quarter of 2023 (January-March). Crypto asset (virtual currency) trading revenue was approximately ¥5.1 billion ($38 million), down from approximately ¥7.2 billion ($54 million) in the same period last year.

This is a 1% decrease from about 5.2 billion yen ($39 million) in the previous quarter (4Q 2022). Robinhood also reported that cryptocurrencies held in custody fell 42% year-on-year to about 1.6 trillion yen ($12 billion).

Source: The Block

To date, the largest cryptocurrency transaction revenue was approximately 30.9 billion yen ($230 million) in the second quarter of 2021 (April-June).

Overall, Robinhood’s total net revenue for the first quarter of this year increased by 16% quarter-on-quarter to approximately 59.2 billion yen ($441 million). Transaction-based revenue also increased by 11% quarter-on-quarter to about 27.8 billion yen ($207 million).

Assets under custody increased by 26% from 4Q 2022 to about 10 trillion yen ($78 billion). This is mainly due to rising market valuations of growth stocks and cryptocurrencies.

Robinhood Chief Financial Officer Jason Warnick commented:

The company delivered four consecutive quarters of revenue growth as it pursued a leaner operating model. At the same time, it delivered new products and features that lead to significant improvements in customer satisfaction.

Started offering its own cryptocurrency wallet

As a new product in the cryptocurrency sector, Robinhood launched a self-managed Web3 wallet “Robinhood Wallet” on iOS in March.

It supports both Polygon (MATIC) and Ethereum (ETH) networks, and can be connected to various decentralized applications (dApps).

Currently supported tokens include COMP, MATIC, SHIB, SOL, UNI, USDC and more. You can also store NFTs (non-fungible tokens).

Robinhood’s head of cryptocurrency Johann Kerbrat said the company envisions adding a Web3 browser, in-app rewards, and more token handling on Polygon Network in the future.

In April, the company also announced that it would soon start offering “Robinhood Connect,” which links the company’s wallet and DeFi (decentralized finance) app.

connection: US Robinhood to provide collaboration function between virtual currency wallet and DeFi

What is a self-managed wallet?

A wallet that is used to manage private keys and hold assets by yourself instead of an exchange. It is also called “self-hosted” or “self-custody”.

▶Cryptocurrency Glossary

The post US Robinhood 1Q earnings report Decrease in cryptocurrency trading revenue appeared first on Our Bitcoin News.


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