Latest news with #Tenev
Business Times
07-05-2025
- Business
- Business Times
Robinhood plans blockchain to trade US assets in Europe
[NEW YORK] Robinhood Markets is developing a blockchain-based platform that will allow retail investors in Europe to trade US securities such as stocks, according to two sources familiar with the matter. The venture will be likely launched through a partnership with a digital asset firm, according to the sources. Arbitrum, a blockchain that is overlaid on Ethereum, and Solana, another popular blockchain, have both been under consideration for the partnership, they said. Discussions are still ongoing and an agreement has not yet been finalised, one source with direct knowledge said. A spokesperson for Menlo Park, California-based Robinhood declined to comment. Offchain Labs, the developer of Arbitrum blockchain, and Solana Foundation, the non-profit behind Solana blockchain, both did not respond to requests for comment. The push to offer tokens that represent financial instruments has increased in popularity as global institutions see the opportunity for cutting the costs associated with traditional trading infrastructure, as well as the benefits of increased transparency and standardisation. A Global Financial Markets Association report found that distributed ledger technology could unlock around US$20 billion annually in global clearing and settlement costs. Crypto exchange Coinbase Global recently expressed interest in offering tokenised securities. Robinhood, whose customers in the European Union only have access to trading cryptocurrencies, secured a brokerage license in Lithuania last month, allowing it to offer investment services such as stock trading in the bloc. The company also signed a deal to acquire crypto exchange Bitstamp in June last year, which when closed, would allow Robinhood to offer crypto-linked derivatives using Bitstamp's MiFID multilateral trading facility license. Robinhood chief executive officer Vlad Tenev said in a podcast in March that the firm was eyeing tokenizing securities, noting it would be part of a broader push to integrate digital assets into the financial system. 'I think tokenised securities can really push forward US company dominance in the global market,' Tenev said in the podcast. 'Right now, it's very difficult to invest in a US company if you are overseas.' Robinhood is not alone in pursuing the benefits of tokenised assets. BlackRock, Franklin Templeton and Apollo all have launched their tokenised funds in recent years. BlackRock's USD Institutional Digital Liquidity Fund, or BUIDL, has attracted more than US$2 billion since its launch last year. BLOOMBERG
Yahoo
05-05-2025
- Business
- Yahoo
HOOD Q1 Earnings Call: Product Expansion Drives Outperformance and Diversification
Financial services company Robinhood (NASDAQ:HOOD) announced better-than-expected revenue in Q1 CY2025, with sales up 50% year on year to $927 million. Its non-GAAP profit of $0.45 per share was 21.8% above analysts' consensus estimates. Is now the time to buy HOOD? Find out in our full research report (it's free). Revenue: $927 million vs analyst estimates of $915.7 million (50% year-on-year growth, 1.2% beat) Adjusted EPS: $0.45 vs analyst estimates of $0.37 (21.8% beat) Adjusted EBITDA: $470 million vs analyst estimates of $490.5 million (50.7% margin, 4.2% miss) Operating Margin: 39.9%, up from 25.6% in the same quarter last year Free Cash Flow was $631 million, up from -$1.42 billion in the previous quarter Funded Customers: 25.8 million, up 1.9 million year on year Market Capitalization: $42.36 billion Robinhood's first quarter results were shaped by rapid product launches and increased engagement from active traders. CEO Vlad Tenev emphasized the impact of new offerings such as futures trading, prediction markets, and the expanded Legend platform, which management credits for driving double-digit volume growth across equities, options, and crypto. The rollout of additional features for active traders, as well as the near doubling of Gold subscriptions, contributed to higher transaction-based revenues and growing wallet share. Looking forward, management highlighted the company's focus on broadening its financial ecosystem with upcoming launches in banking, advisory services, and international expansion. Tenev described the upcoming Bitstamp acquisition and the planned rollout of Robinhood Banking as central to the firm's long-term strategy. He acknowledged regulatory uncertainty in crypto and product integration as key factors that could influence growth, noting, 'We're heads down getting things ready for the crypto event, which will be in France in two months.' Management attributed first quarter results to a combination of increased product adoption and expansion into new trading segments, differentiating Robinhood from competitors. The quarter's outperformance versus expectations was driven by the success of new products, enhanced user engagement, and early momentum in international markets. Active Trader Platform Scaling: Robinhood Legend saw a surge in incremental trading volume following the introduction of new asset classes and features, with management noting that most of this activity was incremental rather than cannibalizing other segments. Futures and Prediction Markets Launch: Futures trading and prediction markets, both launched in Q1, generated significant early interest. Futures contracts traded in April alone exceeded all of Q1, and prediction markets passed 1 billion contracts in the last six months, with management citing strong adoption from both existing and new users. Gold Subscription and Credit Card Expansion: Gold subscribers grew to 3.2 million by quarter end, supported by the successful rollout of the Gold credit card. Management described Gold as a central cross-sell lever, driving higher deposit rates and broadening product adoption. Retirement and Advisory Asset Growth: Retirement assets rose to $16 billion, and the completed TradePMR acquisition brought $40 billion in platform assets, establishing a foundation for Robinhood's entry into the registered investment adviser (RIA) market. International and Crypto Diversification: The U.K. brokerage offering gained traction, and the upcoming Bitstamp acquisition is expected to expand Robinhood's global crypto reach. Management also referenced continued product improvements and regulatory engagement as necessary for further crypto asset listings and tokenization initiatives. Management expects that continued product expansion and diversification will support revenue growth and operating leverage, but recognizes that regulatory changes and integration of new acquisitions could present challenges. Banking and Advisory Launches: The upcoming launch of Robinhood Banking and growth in RIA custody services are intended to increase wallet share and address higher-value client segments, supported by technology from recent acquisitions. Crypto and Tokenization Initiatives: Management identified ongoing regulatory developments as critical to future crypto growth, particularly for initiatives like asset tokenization and staking, which depend on greater legal clarity. International Expansion and Product Velocity: Broader rollout of brokerage and trading products in the U.K. and Asia, along with continued feature releases on Legend and Cortex, are seen as key drivers of new customer acquisition and engagement. Christopher Allen (Citi): Asked about the source of strong net deposits. Management said engagement was broad-based, with both new and existing customers contributing, and highlighted the resilience of active traders through volatility. Dan Dolev (Mizuho): Questioned the trajectory of Gold subscription growth. Management sees Gold as a core loyalty program and expects continued high attach rates, reinforced by new benefits and credit card rollout. Devin Ryan (Citizens): Probed crypto segment dynamics and market share. Management acknowledged fluctuating volumes but emphasized increased market share and ongoing product diversification within crypto. Ben Budish (Barclays): Sought details on credit loss provisioning and customer behavior with the Gold credit card. Management reported low delinquency rates, gradual provision increases, and disciplined underwriting standards. James Yaro (Goldman Sachs): Inquired about the impact of U.S. banks entering crypto. Management believes greater participation will expand the market, with Robinhood focused on product innovation and maintaining competitive positioning. In the coming quarters, the StockStory team will monitor (1) the rollout and adoption of Robinhood Banking and advisory services to assess wallet share gains, (2) progress on integrating Bitstamp and its impact on global crypto offerings, and (3) the pace of international expansion, particularly in the U.K. and Asia. We will also watch for regulatory developments that could affect crypto product launches and tokenization efforts. Robinhood currently trades at a forward EV/EBITDA ratio of 21.8×. Should you double down or take your chips? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
NBC News
28-03-2025
- Business
- NBC News
Robinhood CEO sees Amazon-like subscription model as path to 'loyalty' in financial services
Robinhood CEO Vlad Tenev is betting that by rolling out a large enough portfolio of digital investment products, more consumers will be willing to pay a monthly subscription for its product suite. Subscribers to Robinhood Gold pay $5 a month or $50 a year for perks like 4% interest on uninvested cash, access to professional research, and no interest on the first $1,000 of margin borrowed. Now the company is adding wealth management features called Robinhood Strategies, which offers curated access to exchange-traded fund portfolios and mixes of handpicked stocks. The service, available to Gold Subscribers, carries a 0.25% annual management fee, capped at $250. Robinhood also said this week that with its new Robinhood Banking offering, Gold subscribers will get private banking services with tax advice and estate planning tools, perks like access to private jet travel, five-star hotels and tickets to Coachella, and 4% interest on savings accounts. Customers will also soon be able to get cash delivered to their doorstep, saving them a trip to the ATM, though few details were provided. Tenev told CNBC in an interview that Robinhood's subscription service could be similar to what users get from Amazon Prime or Costco membership, where their monthly fee feels justified by the quality and quantity of the perks, which keep them coming back. 'My philosophy behind it is subscriptions are about loyalty,' Tenev said. 'So if you're a subscriber to something, then that service is sort of the first in mind when you think about trying something else from that category.' Tenev said that in financial services, loyalty is particularly important because it's 'equivalent to wallet share.' Tenev said the number of subscribers increased from about 1.5 million a year ago to 3.2 million today, adding that it's a 'nine-figure business,' meaning at least $100 million in annual revenue. Robinhood grew in popularity among younger investors by making it easy to buy and hold fractional shares in companies using a simple mobile app, and then moving into crypto. Tenev said on Thursday that over the longer term, Robinhood wants to be 'the place where you can buy, sell, trade, hold any financial asset, conduct any financial transaction.' Robinhood shares are up 19% this year after almost tripling in 2024, when crypto prices soared.
Yahoo
27-03-2025
- Business
- Yahoo
Robinhood is taking on Bank of America, Citigroup, and JPMorgan
Robinhood (HOOD) is going after the big banks and their ATMs for deposits. The trading platform turned quasi-bank and wealth manager unveiled two new products that will compete for business with America's largest legacy banks, including JPMorgan (JPM), Citigroup (C), and Bank of America (BAC). Robinhood Banking will provide access to traditional checking and savings accounts with an annual percentage yield of 4%, provided one is a member of the platform's Gold service. FDIC insurance is on offer from Robinhood's tie-up with Coastal Community Bank. Read more: 10 best high-yield online checking accounts for March 2025 (up to 7.00% APY) Furthermore, the company is promising to deliver "cash to your door" through an app similar to Uber's (UBER) if you are a banking customer. Robinhood co-founder and CEO Vlad Tenev told Yahoo Finance that the company wants to be a one-stop destination for people to manage their wealth (see video above). He added that there is demand for home cash delivery as people try to avoid various ATM crimes, "especially in San Francisco." Instead, a person's cash will show up at their house in a large nondescript envelope, Tenev said. Tenev didn't rule out exploring a bank charter down the line. The company originally explored the idea of one in 2019 but deemed it too costly. Robinhood Strategies will serve as a wealth management service with a 0.25% annual fee, capped at $250, for its premium Gold subscribers. Users with as little as $50 can access portfolios with exchange-traded funds (ETFs) managed by the company's investment experts, or what it calls a "private banker." For a $500 minimum, investors will unlock access to individual stocks in the portfolios. Read more: Robinhood Gold Credit Card review: 3% cash back for investors Tenev and Robinhood have continued their breakneck pace of new products from last year. Earlier this month, the company debuted a prediction markets hub in its app. The contracts allow users to wager on everything from what the fed funds rate could be in May to NCAA tournament games. In October 2024, the company launched event contracts for the presidential election. Customers of the platform were able to trade on "who will win the 2024 presidential election." The platform provider also debuted futures and index options trading. And it has since released Robinhood Legend, billed as a sleeker platform that targets more sophisticated traders. Robinhood Legend allows users to open up to eight charts in a single window, and it could elevate various technical indicators such as Bollinger Bands. Watch: How TD Ameritrade's former CEO sees AI impacting trading Tenev said he isn't worried that Robinhood won't be able to shake its meme stock image. But he did acknowledge the company has work to do to make its new services successful. "We believe, investors under-appreciate Robinhood's broader financial/money platform, beyond its core focus on active traders," Bernstein analyst and Robinhood bull Gautam Chhugani wrote. "Robinhood is also leaning into disruptive technologies to bring down the cost of financial access, which has historically been only available to only the elite (high net-worth thresholds) within banking." Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email
Yahoo
27-02-2025
- Business
- Yahoo
Robinhood CEO Tenev Says Financial Regulation Good for the Firm
(Bloomberg) -- Robinhood Markets Inc. Chief Executive Officer Vlad Tenev said that his firm, which has been probed by US financial regulators over its cryptocurrency operations, benefits from government oversight. NYC's Congestion Pricing Pulls In $48.6 Million in First Month NYC to Shut Migrant Center in Former Hotel as Crisis Eases The Trump Administration Takes Aim at Transportation Research DC Mayor Re-ups Call for Statehood as Trump Threatens Takeover Shelters Await Billions in Federal Money for Homelessness Providers 'I think customers want to know that their assets are safe and that someone is watching over the companies that are providing financial services to them and holding them accountable,' Tenev said in a Bloomberg Television interview Tuesday. 'I actually think regulation is good for our business, not just good for customers, and we know how to operate in a highly regulated arena.' Robinhood said Monday that the US Securities and Exchange Commission closed an investigation into the firm's cryptocurrency operations and isn't pursuing any enforcement action. The company had disclosed last year that it received what's known as a Wells notice, indicating the SEC had initially determined to recommend an enforcement action. Robinhood said Monday that 'this investigation never should have been opened.' Tenev said some regulations need to change, particularly those requiring that individual investors be accredited before they're allowed to invest in closely held companies. Robinhood wants to use its platform to allow retail investors to buy stakes in firms such as SpaceX and OpenAI. 'The accreditation rules have to be rethought,' Tenev said. 'A lot of these rules were created in a different time, where the problem was lack of information,' he said, adding that the internet has made data on closely held firms much more widely available. 'So I think that's why the rules have to be rethought. I think they were put in for good reasons, but those reasons no longer hold.' --With assistance from Sonali Basak and Tim Stenovec. Trump's SALT Tax Promise Hinges on an Obscure Loophole Walmart Wants to Be Something for Everyone in a Divided America Meet Seven of America's Top Personal Finance Influencers Why Private Equity Is Eyeing Your Nest Egg China Learned to Embrace What the US Forgot: The Virtues of Creative Destruction ©2025 Bloomberg L.P. Sign in to access your portfolio
