CEO’s EU Expansion Strategy Unveiled

• Robinhood missed its quarterly earnings expectations in Q3, leading to announcements that it will be expanding its crypto trading services to the EU.
• Asked about the possible relisting of ADA and Solana, CEO Tenev said that he awaits regulatory clarity as he warned the US government about losing out on crypto innovation.

In June this year, Robinhood Markets announced that it would be delisting Cardano (ADA), Solana (SOL) and Polygon (MATIC) after the three were named in an SEC lawsuit against Binance and Coinbase. In a recent earnings call with investors and the media, CEO Vlad Tenev revealed the conditions for relisting the three tokens amid a broader uptick in crypto prices.

Robinhood recorded $467 million in third-quarter revenues, slightly missing out on the market’s estimate of $479 million. One of the most significant factors in the underwhelming performance was the drastic dip in crypto trading volume on the platform. In Q3, Robinhood recorded a 55% drop in crypto activity.

In a call with analysts and the media, CEO Vlad Tenev was tasked with explaining the company’s outlook on crypto moving forward.

“I think it’s hard for me to speculate on activity predictions and the broader cryptocurrency market,” he stated in response to the crypto downtrend.

We’re focused on using this as an opportunity to build our capabilities, build the platform. You’ve heard me talk in this call about how we want to make sure customers who are using Robinhood for crypto know that they’re getting terrific pricing. And so we’ve continued to make progress there.

Relisting Cardano (ADA) and Solana (SOL), Expanding into EU

With the dip in crypto volume, the question of the delisting of three of the most popular cryptos earlier was bound to come up, and it did. John Todaro of New York-based investment manager Needham & Company asked Tenev when we should expect the relisting.

“What would give you comfortability to relist some? Is it some of these ongoing suits maybe with Coinbase that need to get resolved? Any clarity there?” posed Todaro.

In response, Tenev claimed Robinhood’s direction mostly depends on US authorities. He declined to point to one specific condition the tokens need to meet for their relisting.

“It’s hard to say what specifically we’re waiting for to give us comfort. I think that rules — rule-making court case data, that all helps,” stated Tenev.

And of course, we’ll continue to push for regulatory clarity because I think it would be a shame for the innovation that we’ve been seeing in crypto to be co-opted overseas. I think it’s very, very important for the US to remain a leader in every new technology in the industry that we possibly can.

The three tokens have all notched gains in the past 24 hours. MATIC and SOL have gained over 5%, with ADA gaining a paltry 1.5%.

Meanwhile, Robinhood is expanding to the European market. This follows the company’s expansion into the UK earlier this year. It comes after the enactment of MiCA regulatory framework, which holds crypto companies to higher standards.

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