Robinhood has released its first-quarter reports, showing a 224% increase in cryptocurrency trading volume.
Despite the United States Securities and Exchange Commission’s (SEC) threat to take legal action against Robinhood, the company’s crypto operation has continue to grow. During the first quarter of 2024, Robinhood’s cryptocurrency services drove more than 38% of the company’s transaction-based revenue.
Robinhood Crypto Volume Grows Amid SEC Issues
As evidenced by the first-quarter reports released this week, Robinhood’s cryptocurrency trading service has not only weathered the storm of SEC issues but also significantly propelled the company’s growth.
The firm recorded an unexpected year-over-year increase of 59%, up to $329 million in transaction-based revenue, of which its cryptocurrency revenue increased by over 200% from last year to $126 million.
Further information shows that Robinhood also recorded a massive 65% increase in its year-over-year assets under custody (AUC) to $129.6 billion. The report attributes this growth to the firm’s cryptocurrency valuations, high equity, and continued net deposits.
Regarding the reports, Vladimir Tenev, CEO and Co-Founder of Robinhood, said, “We continued to aggressively execute on our product roadmap in Q1, leading to all-time highs,” adding that “Q2 is off to a strong start, with April being our highest month of the year.”
The company expects further developments and positive reports for the coming quarters of the year.
Robinhood Founder Replies to SEC’s Notice
On a quarter-one call hosted yesterday by the company, Tenev referred to the recent SEC Wells notice as a “disappointing development” as the company’s crypto notional trading volume increased in the first quarter of the year to $36 billion.
Furthermore, Robinhood’s chief financial officer, Jason Warwick, revealed that the company had drafted a more conventional approach to its cryptocurrency listings and services to match the same legal standards as its order business and services.
To strengthen customers’ confidence, Tenev said, “We’re going to defend the firm and continue to advocate for our customers.” Reassuring the customers that their funds are safe and will not be affected by the recent issues with the United States SEC. Robinhood continues to advertise itself as a reliable marketplace for cryptocurrencies.