Popular
trading platform Robinhood saw substantial growth across its key metrics in
October, with significant increases in trading volumes and customer assets
under management.
Robinhood Reports Surge in
Trading Volumes, Customer Growth in October
The
company’s equity trading volumes jumped 48% to $126.4 billion compared to
September, while cryptocurrency trading surged 51% to $5.6 billion. Options
contract trading also showed strong momentum, rising 16% to 158 million
contracts.
Compared to October 2023, the surge is even more visible: in equities, volumes rose by 149% from $50.8 billion, and in cryptocurrencies, by 143% from
$2.3 billion. The good results in the crypto market confirm data from the Q3
report. In the period from July to September, the popular US-based company generated
$637 million in revenue, marking a 36% increase.
Robinhood’s
assets under custody (AUC) reached $159.7 billion, marking a 5% increase from
September and an impressive 89% rise year-over-year. The platform attracted
approximately 90,000 new funded customers in October, bringing its total
customer base to 24.4 million.
“Net
Deposits were $5.2 billion in October, translating to a 41% annualized growth
rate relative to September 2024 AUC,” the company commented yesterday (Monday).
Over the last twelve months, Net Deposits were $43.2 billion, translating to an
annual growth rate of 51% relative to October 2023 AUC.
Margin
balances grew to $6.2 billion, up 13% from September, while cash sweep balances
increased 4% to $25.5 billion. The company’s securities lending revenue reached
$19 million, showing a 6% monthly increase.
Robinhood Share Price:
HOOD Tests 3-Year Highs
Following
the latest report, Robinhood’s shares surged over 7% during Monday’s session,
testing levels above $34 per share. For the company listed on Nasdaq under the
ticker HOOD, this marks the highest level in three years.
Robinhood’s
recent stock surge is partly attributed to Bitcoin‘s ascent toward the $90,000
mark, setting new all-time highs. Concurrently, Robinhood has partnered with
major cryptocurrency firms to
launch the Global Dollar Network, marking a significant expansion of its
digital asset strategy. This initiative, involving industry leaders such as
Kraken, Paxos, and Galaxy Digital, aims to challenge the stablecoin market
currently dominated by Tether and USD Coin.
The network
will introduce USDG, a regulated stablecoin issued by Paxos in Singapore, with
DBS Bank managing the reserve assets. This move represents Robinhood’s most
ambitious crypto-related venture since introducing cryptocurrency trading to
its platform.
This article was written by Damian Chmiel at www.financemagnates.com.
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