According to Bloomberg, the trading platform Robinhood, which allows cryptocurrency transactions alongside stock trades, has launched its cryptocurrency trading application in Europe. Following its successful entry into the stock market in the UK, the platform will now offer access to more than 25 altcoins, including Bitcoin (BTC) and Ethereum (ETH), to European investors. The company’s strategic expansion comes right after the recent surge in the cryptocurrency market.
Robinhood Expands in Europe
After recently entering the stock market in the UK, Robinhood has now started offering commission-free cryptocurrency trading in Europe. European investors will be able to seamlessly trade more than 25 cryptocurrencies, including Bitcoin, Ethereum, and Solana (SOL), on the platform.
Johann Kerbrat, General Manager of Robinhood Crypto, mentioned in an interview with Bloomberg that the application’s launch will be accompanied by an innovative loyalty program in a cashback style. This program will enhance the user experience by crediting a certain percentage of each user’s monthly trading volume in BTC and encourage customer loyalty to the platform.
Robinhood’s revenue strategy for European cryptocurrency brokers includes receiving a discount from market makers and trading venues operating on its behalf. Kerbrat stated that this rebate in Europe would be approximately “65 basis points” per trade, nearly twice the 35 basis points earned from cryptocurrency orders in the US. This robust revenue model comes at a time when conceptual cryptocurrency trading volumes on Robinhood witnessed a significant 75% increase in November compared to the previous month.
What’s Next for Robinhood?
While the European expansion is a significant step for Robinhood, the company will not offer cryptocurrency services to investors in the UK due to regulatory uncertainties surrounding cryptocurrencies. Instead, the company is determined to navigate and promote the global cryptocurrency community in different jurisdictions, having been licensed as a virtual currency exchange operator in Lithuania since September.
As expectations for the approval of the first spot Bitcoin ETF in the US grow until February 2024 and the cryptocurrency market continues to rise, Robinhood’s expansion into Europe not only takes advantage of the cryptocurrency market rally but also paves the way for further growth for the company. Robinhood’s plans to introduce cryptocurrency transfers and list additional cryptocurrencies next year demonstrate its readiness to evolve alongside the cryptocurrency market.
