Crypto Revenue of Broker Robinhood Falls By 30%

In the first quarter of 2023, Robinhood reported that their digital asset-related revenue had dropped 30% year-over-year to $38 million.

This was the lowest figure since the fourth quarter of 2020, when it was only $12 million.

Although their orders decreased by less than 1% and their net interest income increased 24.5%, their consolidated revenue still only increased 16%.

Additionally, the company had a net loss of $511 million compared to $166 million from the fourth quarter.

The decrease in revenue was attributed to an increase in funds in closed transactions (6%) and fewer executed orders.

The volume of digital assets held in custody, however, increased 37% due to improved market conditions.

Robinhood also announced that the Robinhood Wallet app was downloaded over 100,000 times in 130 countries and they launched Robinhood Connect, a new way to fund Web3 wallets.

Lastly, they will pay up to $10.2 million in fines due to the operational and technical failures that hurt investors.