In a cozy Manhattan office, Robinhood’s CEO, Vlad Tenev, and crypto lead, Johann Kerbrat, planned the big announcement for expanding Robinhood’s crypto business in the European Union. It was a significant move for the stock brokerage, made just days before they’d officially break the news.
Depending on how you view the crypto industry, this expansion was either incredibly timely—considering Bitcoin’s near tripling in value—or it might seem a bit overdue. Many have pessimistically declared “crypto is dead” in the face of heightened regulatory scrutiny.
But for Tenev and his team, entering the EU market was part of their larger crypto journey spanning five years. During this time, crypto trading on Robinhood grew from a small portion of their revenue to a substantial chunk, nearly half.
“I believe we’re still in the early stages of crypto,” Tenev shared with Fortune, underlining their commitment to this space.
From highs to lows, Robinhood’s crypto venture has seen it all. Back in 2018, they ventured into crypto trading, taking a risk by embracing Bitcoin and later Ether. By 2021, fueled by the Dogecoin craze, crypto became a significant moneymaker for Robinhood. Yet, post the Dogecoin frenzy, their crypto revenues dropped drastically.
Tenev acknowledged the volatility of the market, saying, “I can’t control the market, but our goal is steady growth in all conditions.”
However, alongside revenue declines, Robinhood’s crypto endeavors faced regulatory hurdles. They were fined by New York’s financial regulator and faced inquiries from the Securities and Exchange Commission (SEC). The SEC’s scrutiny on unregistered securities led Robinhood to remove certain cryptocurrencies from its platform.
Kerbrat didn’t offer more on the SEC’s inquiries, stating, “Nothing further has occurred at this point.”
