A few months from now, Robinhood’s CEO announced plans to expand the Robinhood Wallet internationally.
During the third quarter of 2022, Robinhood reported lagging cryptocurrency revenue. Despite those results, its CEO says the company’s ambition to serve its market will not be dampened.
During its third-quarter report, the trading platform announced that its monthly active users (MAU) had decreased by 12% and notional volume had decreased by 24%. According to Robinhood executives, these two factors were cited as the main reasons for a 12% drop in crypto revenue, reaching $51 million.
As stated in the company’s results filing, Active users and trading volume is drastically falling. Customers constantly need to navigate the environment of the volatile market.
However, the company plans to invest more resources into the crypto industry, including supporting cryptocurrencies other than bitcoin, an international retail wallet, and NFT features. Approximately 10,000 Robinhood customers could test its Polygon-based Robinhood Web3 wallet on Sept. 27, and over one million people were signed up for the waitlist. The stablecoin USD Coin (USDC) was added to Robinhood a day later.
The Robinhood Web3 wallet, based on Polygon, was launched in beta on Sept. 27 to 10,000 customers, with more than 1 million on the waitlist. The stablecoin USD Coin (USDC) was also integrated a day later by Robinhood.
A Robinhood spokesperson said, “We will be offering the Robinhood Wallet in the near future to our international retail base.”
Tenev said they would likely integrate a feature for viewing and custody of nonfungible tokens (NFTs) shortly when asked about Robinhood’s plans. Currently, Tenev does not appear to be considering connecting to NFT marketplaces.
Tenev noticed that the customer wanted Robinhood to add blockchains so more coins could be traded and swapped. He highlighted that Robinhood’s vision to become “the safest, most trusted” cryptocurrency provider would not be compromised by introducing several upcoming coins in Q3.
The Robinhood employee also pointed out that the company has launched a free program called “Learn and Earn” to educate and retain a sizeable retail base over time.
According to the company, the Robinhood Wallet and Lightning Network integration will continue to progress in Q4 2022.
Despite an increase in revenue of 14% to $361 million, Robinhood ended the quarter with a loss of $175 million. A combined adjusted EBITDA of $47 million was reported.
According to Investopedia, Robinhood’s earnings for Q3 2022 were $0.20 per share.
As of November 3, Robinhood’s share price was $11.40, down 4.36% from $14.42 a year ago and 69.22% from the previous year.