Popular trading app Robinhood is turning its attention to international expansion, a strategy that will also see the San Francisco-based company focus more on cryptocurrencies, according to Steve Quirk, the company’s chief brokerage.
According to Quirk, the company is “doing a lot of exploration to find compliant ways to extend [the list of supported crypto assets].”
“We also have aspirations to take this brand globally and we would do that in crypto first,” he said. CNBC Wednesday.
When asked to explain what he meant by “crypto first,” given the presence of Coinbase and other major crypto companies in the space, Quirk said that “the path for [Robinhood] to go global and have the most traction is probably thanks to crypto.
Citing the regulatory aspects of the market and “other facets”, Quirk added that increased support for digital assets could be “the easiest way” for Robinhood to go global.
Robinhood’s “Aggressive Goals”
Robinhood was at the center of the meme stock frenzy last year as users turned to the app to pump shares of companies like GameStop and AMC Entertainment.
The company went public at a valuation of $32 billion in July 2020. Since then, however, and following recent difficulties, it now has a market capitalization of just $11.96 billion.
According to the latest earnings report from Robinhood, the total number of accounts on the trading platform increased to 22.7 million at the end of 2021, although monthly active users fell to 17.3 million from 18.9. million in the previous quarter.
Now, at least according to Quirk, betting big on crypto appears to be the company’s best chance to improve results.
“Robinhood has set ambitious goals to begin opening its crypto platform to customers around the world in 2022. The company believes in the immense potential of the crypto economy and sees a great opportunity to serve customers around the world,” Robinhood said in its earnings report.
The long-awaited rollout of crypto wallets last month is supposed to help the company achieve this goal.
The project is still in its early stages, currently being available to just 1,000 top-of-the-waitlist customers and limiting daily withdrawals to 10 transactions worth up to $2,999.
Also, as Robinhood CFO Jason Warnick said last month, adding new cryptocurrencies can take time.
According to him, following conversations with regulators who have warned that they may consider certain tokens as unlicensed securities, the company is proceeding with caution in adding new crypto assets.