Robinhood attributed the decline in its transaction-based revenue to reduced cryptocurrency trading volumes on the platform.
Trading platform Robinhood has revealed its intentions to expand into Europe in the coming weeks. The company is exploring establishing brokerage operations in the United Kingdom. It made this decision known on Tuesday, Nov 7.
The commission-free trading app made this announcement as it revealed its third-quarter results, indicating a revenue miss. Robinhood attributed the decline in its transaction-based revenue to reduced cryptocurrency trading volumes on the platform.
The firm reported a net revenue of $467 million, slightly below the average analyst estimate of $478.9 million. Nevertheless, this marked a 29% growth compared to the same period last year. Transaction-based revenues declined by 11% year-on-year to $185 million, largely due to a 55% decrease in cryptocurrency notional volumes over the year, as stated in Robinhood’s Tuesday announcement.
Despite the decrease in cryptocurrency trading activity, Robinhood has ambitious plans for its crypto services. The company recently revealed its intentions to expand its services to Nevada and added support for the meme cryptocurrency Shiba Inu (SHIB) last month.
Cointelegraph reached out for more information regarding the expansion to the EU but is yet to hear back from Robinhood.
The move comes as some crypto firms have suspended serving U.K. customers thanks to new promotions rules that require crypto firms to provide clear risk labels and implement system changes that came into effect on Oct. 8.
Back in June, Robinhood ceased support for cryptocurrencies listed in SEC lawsuits against Binance and Coinbase, including Cardano (ADA), Polygon (MATIC), and Solana (SOL). Presently, Robinhood facilitates trading for 15 various cryptocurrencies, such as Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), and Avalanche (AVAX).
This occurred when the U.S. SEC targeted alternative cryptocurrencies, labeling them as security tokens. As a regulated exchange, Robinhood seeks to prevent clashes with the federal securities regulatory authority.