Robinhood's blockchain earns $26 million as crypto income grows 20% in the third quarter
Robinhood Chain posts first quarter on mainnet
Robinhood reported that its crypto revenue rose 20% from the second quarter to $120 million in the third quarter, driven by its new Robinhood Chain blockchain. In its first full quarter operating on the main network since launching on July 1, the chain brought in $26 million.
Crypto trading volumes also rose 23% from the second quarter to $49.8 billion. Of that total, $20.6 billion came through the Robinhood app and $29.2 billion on Bitstamp, the exchange Robinhood acquired last year. An exchange is a platform where people buy and sell digital assets.
Key figures from the quarter
- Crypto revenue grew 20% from the second quarter to $120 million.
- Robinhood Chain earned $26 million in its first full quarter on mainnet.
- Without Robinhood Chain, crypto transaction revenue fell 6% to $94 million.
- Total crypto revenue was still down 55% from a year earlier.
- Crypto trading volume rose 23% to $49.8 billion.
- Robinhood Chain processed more than $80 billion in decentralized exchange (DEX) volume and collected over $50 million in fees.
- DEX means an exchange that runs on a blockchain instead of a central company.
- Prediction markets, where people bet on future events, made $173 million, up 11% from the second quarter.
- Robinhood's total net revenue rose 12% to a record $1.42 billion, while net income fell 14% to $476 million.
How Robinhood Chain is performing
Robinhood Chain is a layer 2 blockchain, a type of network built on top of another blockchain called Arbitrum to help process transactions faster. The company said the network handled more than $80 billion in trading volume on decentralized exchanges during the quarter and generated over $50 million in fees.
Prediction markets keep leading crypto
Event contracts, the company's prediction markets, generated $173 million in the quarter, up 11% from the second quarter and more than six times the amount from a year earlier. That figure includes $28 million from Rothera, a joint exchange Robinhood operates with Susquehanna.
Market reaction
Robinhood shares fell 5.5% in after-hours trading to $89.22, leaving the stock down roughly 22% for the year so far.
What this tells us about Robinhood's crypto business
Robinhood's overall crypto revenue is growing, but the picture is mixed. Its new blockchain and rising trading volumes helped lift the total, yet trading revenue without the chain still dropped 6% from the second quarter. On a yearly basis, crypto revenue remains far below where it was a year ago, when markets were near record highs. Meanwhile, prediction markets have become Robinhood's biggest crypto earner, overtaking traditional crypto trading.
What the earnings report says
The figures come from Robinhood's third-quarter earnings filing. The company reported total net revenue of $1.42 billion, up 12% from a year earlier, and net income of $476 million, down 14%.
Source
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