Robinhood Revenue Hits $3 Billion as Crypto Trading Surges 367%

Robinhood’s cryptocurrency trading platform fuels record profits as global expansion and blockchain innovations reshape retail investing

Key Takeaways

• Crypto revenue surges 367% as Robinhood generates $626 million from cryptocurrency trading in 2024, driving total company revenue to nearly $3 billion and pushing market cap to $98 billion.
• Tokenized stock trading launches in Europe allowing 24/5 trading of over 200 U.S. stocks and ETFs on blockchain rails, with plans to expand to private companies like OpenAI and SpaceX.
• Robinhood Chain blockchain development positions the company to challenge traditional exchanges by migrating tokenized assets to its own Layer 2 infrastructure for round-the-clock trading.

Introduction

Robinhood Markets has transformed from a commission-free trading disruptor into a cryptocurrency-powered financial giant, with CEO Vlad Tenev’s net worth climbing sixfold to over $6 billion. The company’s stock trades at an all-time high of $111 per share as its market capitalization approaches $98 billion, placing it among the world’s top 250 companies.

The brokerage firm generated $1.4 billion in profit from nearly $3 billion in revenue during 2024, managing $255 billion in assets while achieving a 44% net deposit growth rate. This rapid expansion stems largely from Robinhood’s aggressive embrace of blockchain technology and cryptocurrency trading capabilities.

Key Developments

Robinhood recently launched tokenized stock trading in Europe, enabling customers to trade over 200 U.S. stocks and ETFs on blockchain infrastructure. These “stock tokens” operate on the Arbitrum network and provide 24/5 trading with zero commission fees, though they do not grant voting rights to holders.

The company acquired European crypto exchange Bitstamp for $200 million to expand its international presence. Through this acquisition, Robinhood now offers crypto perpetual futures and tokenized stock derivatives to European customers, operating around the clock.

Robinhood plans to migrate its tokenized assets to its own Layer 2 blockchain, dubbed Robinhood Chain, which will be built on Arbitrum technology. The company also intends to offer tokenized shares of major private companies including OpenAI and SpaceX to eligible European customers.

Additional product expansions include Ethereum and Solana staking services for U.S. customers and the Robinhood Strategies robo-advisory service, which charges 0.25% annual fees and targets the $60 trillion wealth management sector.

Market Impact

Robinhood’s stock price reflects strong investor confidence in its crypto-centric strategy, with shares reaching record highs. The company’s Q1 2025 net revenues grew 50% year-over-year to $927 million, while net income surged 114% compared to the previous year.

Cryptocurrency trading now represents a substantial revenue stream, with 2024 crypto revenue reaching $626 million—a 367% increase from the prior year. The platform serves 25.8 million funded customers and holds $221 billion in assets under custody as of early 2025.

Management demonstrated confidence through a $1.5 billion share buyback program, signaling belief in long-term growth prospects. Analysts project the company could reach $5.1 billion in revenue and $1.7 billion in earnings by 2028.

Strategic Insights

Robinhood’s tokenization strategy positions the company to compete directly with traditional exchanges like the New York Stock Exchange by moving assets onto blockchain infrastructure. Galaxy Digital analysts warn this approach could sideline legacy exchanges as trading activity migrates to crypto-native platforms.

The company’s diversification beyond trading into wealth management, consumer finance, and subscription services through Robinhood Gold demonstrates a shift toward more stable revenue streams. This reduces dependence on volatile trading volumes while capturing customers’ broader financial needs.

Robinhood’s European expansion allows the company to test blockchain innovations in less restrictive regulatory environments compared to the United States. The success of these initiatives could provide a blueprint for eventual domestic expansion as crypto regulations evolve.

Expert Opinions and Data

Industry experts highlight both opportunities and risks in Robinhood’s blockchain-focused strategy. Supporters point to the company’s ability to offer 24/7 trading and eliminate traditional market constraints, while critics warn of regulatory uncertainty and security challenges.

Analysts predict Robinhood’s assets under custody could rival Interactive Brokers’ $665 billion within seven years, driven by continued customer acquisition and product expansion. The platform’s customer base of 25.8 million already approaches Charles Schwab’s 37 million funded accounts.

Tenev’s involvement with AI startup Harmonic signals plans to integrate artificial intelligence into Robinhood’s services, potentially offering personalized financial solutions similar to those provided by family offices for high-net-worth individuals.

Conclusion

Robinhood’s transformation into a cryptocurrency-powered financial services company represents a fundamental shift in retail investing infrastructure. The company’s tokenized trading products and blockchain development initiatives challenge traditional market structures while expanding global reach.

The success of Robinhood’s European blockchain experiments provides validation for its long-term vision of 24/7 financial markets built on cryptocurrency rails. With strong financial performance and ambitious expansion plans, the company positions itself as a leader in the convergence of traditional finance and blockchain technology.