Robinhood Markets has expanded its business internationally with the launch of a new commission-free crypto trading app for customers in the European Union. This move follows their recent announcement of launching a commission-free stock trading app in the United Kingdom.
Shares in Robinhood Markets increased by 7% on Wednesday, marking an 18% rise over the past year. The newly introduced app allows EU customers to trade at least 25 different cryptocurrencies, including ones that were delisted from Robinhood's US app.
Earlier this year, Robinhood removed Solana, Polygon, and Cardano from its platforms in response to lawsuits filed by the Securities and Exchange Commission against Coinbase and Binance for not registering the cryptocurrencies as securities. Consequently, US customers now only have access to 15 different cryptocurrencies on Robinhood's platforms, such as bitcoin, Dogecoin, and Ethereum. In contrast, EU customers will enjoy a wider selection of 25+ cryptocurrencies.
Robinhood's launch of the EU crypto app coincides with a surge in the crypto market. Bitcoin has witnessed a substantial increase of 149% over the past year, reaching all-time highs of more than $43,000.
The company reported a surge in crypto trading on its platforms in October, with users buying and selling $2.3 billion worth of cryptocurrencies, representing a 92% increase compared to the previous month.
Initially established in 2013, Robinhood gained popularity during the pandemic as retail investors turned to their share trading platforms amidst the stock market crash in 2020.
Furthermore, the company played a significant role in the meme-stock phenomenon, although they temporarily halted trading of GameStop stock during a short squeeze in January 2021.
In their most recent third-quarter results, Robinhood achieved a 29% increase in revenues, totaling $467 million. This improvement contributed to a reduction of net losses by 55% to $85 million.