Robinhood eyes European expansion amid Q3 revenue drop

Buying and selling platform Robinhood has revealed its intentions to increase into Europe within the coming weeks. The corporate is exploring establishing brokerage operations in the UK. It made this choice recognized on Tuesday, Nov 7.

The commission-free buying and selling app made this announcement because it revealed its third-quarter outcomes, indicating a income miss. Robinhood attributed the decline in its transaction-based income to lowered cryptocurrency buying and selling volumes on the platform.

The agency reported a web income of $467 million, barely under the common analyst estimate of $478.9 million. However, this marked 29% development in comparison with the identical interval final 12 months. Transaction-based revenues declined by 11% year-on-year to $185 million, largely resulting from a 55% lower in cryptocurrency notional volumes over the 12 months, as said in Robinhood’s Tuesday announcement.

Regardless of the lower in cryptocurrency buying and selling exercise, Robinhood has formidable plans for its crypto companies. The corporate just lately revealed its intentions to increase its companies to Nevada and added assist for the meme cryptocurrency Shiba Inu (SHIB) final month.

Cointelegraph reached out for extra data concerning the growth to the European Union however has but to listen to again from Robinhood.

The transfer comes as some crypto companies have suspended serving U.Okay. clients due to new promotion guidelines that require crypto companies to offer clear danger labels and implement system modifications that got here into impact on Oct. 8.

Associated: Robinhood purchased again Sam Bankman-Fried’s stake from US gov’t for $606M

Again in June, Robinhood ceased assist for cryptocurrencies listed in United States Securities and Change Fee lawsuits in opposition to Binance and Coinbase, together with Cardano (ADA), Polygon (MATIC) and Solana (SOL). Presently, Robinhood facilitates buying and selling for 15 varied cryptocurrencies, corresponding to Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE) and Avalanche (AVAX).

This occurred when the U.S. SEC focused various cryptocurrencies, labeling them as safety tokens. As a regulated trade, Robinhood seeks to stop clashes with the federal securities regulatory authority.

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