Robinhood&#039, s Crypto Income Soars 700 % in Q4, Driving Record Revenue

The retail brokerage posted record profitability as digital asset volumes rebounded, thanks to a 700 % increase in cryptocurrency trading revenue in the fourth quarter.

Crypto revenue reached$ 358 million, up from$ 45 million a year earlier, accounting for more than one-third of total transaction-based revenue, which rose over 200 % to$ 672 million. &nbsp,

The trading boom pushed total Q4 revenue up 115 % year-over-year to$ 1.01 billion, while net income soared more than tenfold to$ 916 million, according to the company’s latest figures.

Robinhood is deepening its appearance in bitcoin, announcing in June a bargain to get Bitstamp for$ 200 million, one of the nation’s oldest bitcoin exchanges, in a shift to grow its international footprints.

The business also launched Ethereum staking in the EU next quarter and listed seven fresh U.S. currencies. That number is expected to “accelerate” this year, CEO Vladimir Tenev said in the bank’s income call on Wednesday.

In a bid to improve productivity and streamline cash, Tenev said,” What I am maybe most excited about is tokenization,” referring to a business of the blockchain business that seeks to place real-world property on-chain.

” I think Robinhood is uniquely positioned at the crossroads of traditional banking and DeFi”, Tenev said, referring to the bank’s plans to transform stocks, private funding, and “more”.

The sector, which grew 52 % last year to$ 12 billion, excluding stablecoins, is expected to continue to swell, with some projections forecasting$ 50 billion this year.

The resurgence in crypto trading comes amid a broad market recovery, with Bitcoin ( BTC ) more than doubling in 2024 before surpassing$ 100, 000 in late December, while Ethereum ( ETH) gained 71.5 % last year.

In response, Robinhood’s crypto notional trading volume increased by over 400 % to$ 71 billion in the quarter as a result of increased activity as investors sought to capitalize on shifting macro tailwinds in the form of U.S. crypto exchange-traded funds and a shifting political landscape under President Donald Trump’s leadership.

Beyond bitcoin, Robinhood is betting on worldwide growth and product development, including plans to launch in Asia-Pacific in 2025 with Singapore as its local hotspot. &nbsp,

The company is also expanding its line of products for buying futures and options, aimed at active traders.

Assets under custody ( AUC) jumped 88 % to$ 193 billion, fueled by$ 16 billion in net deposits during the quarter. Robinhood even reported 2.6 million Gold clients, off 86 % year-over-year.

Robinhood’s shares have increased by over 365 % in the last year as a result of its return to success and a rise in investing activity, especially in crypto. &nbsp,

Shares were up 4.8 % to$ 55.91 by the closing bell and a further 17 % to$ 65.45 in after-hours trading.