Robinhood Aims for a “Crypto-First” Approach to Global Expansion
- Robinhood Brokerage Director Says Crypto Will Facilitate ‘Easiest’ Way to Go Global
- The executive also took issue with ‘meme actions’, calling such headlines ‘probably a fad’
Equity trading platform Robinhood is looking to expand internationally with a “crypto-first” approach, according to Steve Quirk, the firm’s chief brokerage.
In an interview with CNBC on Thursday, Quirk said Robinhood is looking to expand its brand overseas and that crypto will gain the most traction to ensure the company expands.
“From a regulatory standpoint and all the other facets that come into play, it’s probably the easiest way to go global,” Quirk said.
The executive also shared his stance on the 2021 “meme stock phenomenon,” calling it a likely “fad.”
“The only thing I would say is I’m just going to look at customer behaviors and tell you that those aren’t even among the most traded names anymore.”
His decision to move away from meme stocks comes as no surprise.
In 2021, Robinhood users accused the brokerage of suspending trading in GameStop shares and other “meme stock” securities, spurred by buying fervor from retail traders attempting to squeeze short positions from big Wall Street companies.
Crypto trading is offered by its subsidiary Robinhood Crypto, LLC. The platform currently lists seven assets, including bitcoin, ether, ether classic, litecoin, dogecoin, bitcoin cash, and bitcoin SV. Last month, the platform released a beta version of its digital asset wallet, known as WenWallets, to 1,000 selected customers. The company hopes to increase that number to 10,000 by March.
A planned crypto-led international expansion could help shore up last year’s low revenue and boost the company’s stock value. Currently, US regulations limit user access to the platform outside of US borders.
Shares of Robinhood (HOOD) fell 15% after hours in late January, trading at a low of $9.77 following an unfavorable quarterly earnings report in which the company disclosed a net loss of $423 million. Its stock price recovered from its January 28 low and rose 34% to around $13.52.
In July, the brokerage priced its initial public offering on the Nasdaq stock exchange at $38 per share with a company valuation of $32 billion.
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