- In a groundbreaking move, Robinhood Markets Inc. is reportedly gearing up to revolutionize the European crypto market.
- Importantly, this strategic expansion aligns with the recent surge in crypto prices and sets the stage for an attractive future in the rapidly evolving digital asset landscape.
- Robinhood’s revenue strategy for European crypto brokerage includes receiving a discount from market makers and trading platforms on behalf of its trades.
Following a successful entry into stock brokerage in the UK, Robinhood Markets Inc. is now preparing to offer cryptocurrency services to European investors!
Robinhood Launching Crypto Services in Europe
In a groundbreaking move, Robinhood Markets Inc. is reportedly gearing up to revolutionize the European crypto market. After a successful entry into stock brokerage in the UK, the platform is now preparing to offer European investors commission-free access to more than 25 cryptocurrencies, including Bitcoin and Ethereum.
Significantly, this strategic expansion aligns with the recent surge in crypto prices and sets the stage for an attractive future in the rapidly evolving digital asset landscape. Robinhood Markets Inc. is set to disrupt the European crypto scene by introducing commission-free trading, a move reflective of its recent entry into the UK stock brokerage market.
The platform, set to go live on Thursday, will enable European investors to seamlessly trade more than 25 cryptocurrencies, including Bitcoin, Ethereum, and many other leading digital assets, marking a milestone for the rapidly growing digital asset landscape in the region.
Meanwhile, in an exclusive interview with Robinhood Crypto’s General Manager Johann Kerbrat, it was revealed that the app’s launch would be accompanied by an innovative cashback loyalty program. This program will credit a percentage of each user’s monthly trading volume in Bitcoin, aiming to enhance the user experience and build loyalty among the platform’s growing customer base.
Notably, Robinhood’s revenue strategy for European crypto brokerage includes receiving a discount from market makers and trading platforms on behalf of its trades. Kerbrat disclosed that this discount would be approximately “65 basis points” per trade in Europe, almost twice the 35 basis points earned from crypto orders in the United States. This robust revenue model coincides with a period when crypto nominal trading volumes on Robinhood saw a significant increase of approximately 75% in November compared to the previous month.
What Comes Next?
While the expansion into Europe represents a significant step for Robinhood, the company is currently opting not to extend its crypto services to investors in the UK due to uncertainties around regulations related to digital assets. Instead, the company, in a move demonstrating a commitment to dealing with regulatory landscapes, has been registered as a virtual currency exchange operator in Lithuania since September.
On the other hand, as crypto prices rise and expectations for a Spot Bitcoin ETF increase, Robinhood’s move towards Europe not only capitalizes on the crypto revival but also sets the stage for further growth. With Robinhood planning to introduce the transfer of crypto assets and additional tokens next year, the company remains committed to evolving in the crypto landscape.
