Robin Hood, the popular trading app for retail investors, revealed that cryptocurrency trading increased in popularity on the platform and now accounts for 41% of its revenue.
Based on its financial results for the past quarter released on August 18, The company generated USD 233 million thanks to cryptocurrency trading, compared to the total USD 5 million earned in 2020. More than 60% of Robinhood’s funded accounts traded digital assets during the second quarter of 2021.
Early 2021 saw the boom in trading with Dogecoin on the platform, representing 62% of Robinhood’s revenue from cryptocurrencies. The earnings report is the first published by Robinhood since it became a public company. Vlad Teev, co-founder and CEO of Robinhood, stated:
“We are encouraged by the number of people entering the financial system for the first time through Robinhood.”
Revenue reached $ 565 million for the quarter overall, an increase of 131% compared to $ 244 million in the second quarter of 2020. Monthly active users more than doubled year-over-year (YoY) from 10.2 million to 21.3 million users, while funded accounts they increased by 130% during the same period.
The value of the assets in the custody of Robinhood also tripled year over year to reach $ 102 billion.
Despite rising crypto revenues, Robinhood reported an overall loss of $ 464 million for the second quarter. However, the losses are attributed to the accounting adjustments corresponding to the notes and fluctuation guarantees maintained by the company.