Robinhood Acquires Credit Card Startup X1, Will Its Crypto Trading Volume Be Improved?

Robinhood, a well known cryptocurrency and inventory buying and selling web site, plans to develop its merchandise considerably. It intends to amass X1, a bank card firm. This $95 million determination guarantees to offer the corporate with an additional income stream and strengthen its current person base.

By integrating X1’s income-based bank card into its repertoire, Robinhood goals to revolutionize its monetary companies ecosystem. This collaboration brings distinctive options, together with attractive rewards and a risk-free trial interval.

Robinhood’s Strategic Enlargement And Acquisition of X1

Robinhood’s unwavering dedication to rising exterior its major buying and selling platform is proven in its ongoing efforts to diversify its enterprise portfolio. The latest acquisition of bank card fintech X1 is a vital step ahead on this try.

In line with the official announcement, the inclusion of X1 to Robinhood’s checklist of acquired corporations already contains MarketSnacks, Cove Markets, Binc, Say, and Ziglu. Vlad Tenev, CEO and co-founder of Robinhood, stated:

With this buy, we will probably be one step nearer to assembly all of our shoppers’ important monetary wants. As a consequence of our collaboration with X1, Robinhood will have the ability to present credit score to our customers.

By venturing into the bank card market, Robinhood goals to bolster its income streams and forge stronger connections with its expansive person base.

Recognizing the significance of diversification in sustaining long-term progress, the agency seeks to handle the decline in month-to-month energetic customers and income in its crypto buying and selling enterprise.

Robinhood Witnesses Decline In Crypto Buying and selling Quantity

In a latest replace, the corporate disclosed a big lower in cryptocurrency buying and selling quantity in Might. Whereas the amount for equities and choices remained excessive, the buying and selling quantity for cryptocurrencies plummeted to $2.1 billion, marking a 43% decline in comparison with the earlier month.

The corporate additionally reported a lower within the each day common buying and selling income (DART), a key metric that measures the typical commerce per day producing commissions or charges.

DART witnessed a 22% decline in Might, with a extra pronounced year-over-year drop of 53%, particularly in crypto buying and selling.

In response to evolving regulatory situations, the agency lately adjusted its choices. The platform delisted three tokens within the second week of June as a part of its routine overview course of.

This determination resulted in solely 15 cryptocurrencies being accessible for buying and selling on the platform.

The delisted tokens, specifically Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL, have been related to the latest authorized motion by the U.S. Securities and Change Fee (SEC) in opposition to business giants Coinbase (COIN) and Binance. The U.S. regulator claims that these tokens are securities below its jurisdiction.