Robinhood’s Crypto Revenue Surges 700%, Driving Record Profits

Robinhood Markets reported a 700% surge in cryptocurrency trading revenue in Q4, fueling record profitability amid a crypto market rebound. Crypto revenue skyrocketed to $358 million, up from $45 million a year ago, making up over a third of the firm’s $672 million transaction-based revenue—a 200%+ increase.

Total Q4 revenue jumped 115% YoY to $1.01 billion, while net income soared over tenfold to $916 million. The retail brokerage is expanding in crypto, announcing a $200 million acquisition of Bitstamp, one of the world’s oldest exchanges, to boost its international reach. Robinhood also introduced Ethereum staking in the EU and listed seven new tokens in the U.S., with more additions expected in 2024.

CEO Vladimir Tenev emphasized Robinhood’s role in tokenization, aiming to bring equities, private investments, and real-world assets on-chain to enhance efficiency and liquidity. The tokenization market grew 52% last year to $12 billion (excluding stablecoins) and is projected to reach $50 billion in 2024.

The crypto market resurgence, driven by Bitcoin’s 2024 surge past $100,000 and Ethereum’s 71.5% yearly gain, propelled Robinhood’s crypto trading volume up 400% to $71 billion in Q4. Investors flocked to capitalize on macro tailwinds such as U.S. crypto ETFs and shifting political dynamics under President Donald Trump.

Beyond crypto, Robinhood plans to expand internationally, launching in Asia-Pacific with Singapore as its hub in 2025. It is also enhancing options and futures trading to attract active traders. Assets under custody (AUC) soared 88% to $193 billion, with net deposits reaching $16 billion.

Shares of Robinhood have surged 365% over the past year, reflecting its return to profitability and booming trading activity. Stock prices rose 4.8% to $55.91 at closing, with after-hours trading pushing it up another 17% to $65.45.