TheBlock
Robinhood Chain generated $26 million in its first quarter on mainnet after launching July 1, helping lift the company's crypto revenue 20% from the previous quarter to $120 million. The layer 2, built on Arbitrum, processed more than $80 billion in DEX volume and generated over $50 million in fees during the quarter.
Why it matters
The results give Robinhood a new crypto revenue stream beyond trading activity. Excluding Robinhood Chain, crypto transaction revenue fell 6% from the second quarter to $94 million, while total crypto revenue remained 55% below the year-earlier period, when crypto markets were near bull-market highs.
The chain's early volume and fee figures also position Robinhood as a more direct participant in decentralized exchange infrastructure. Its mainnet launch adds a platform business to an existing retail trading operation, with Arbitrum providing the underlying layer 2 architecture.
Market impact
Crypto trading volume rose 23% from the previous quarter to $49.8 billion. The Robinhood app accounted for $20.6 billion, while Bitstamp, acquired by the company last year, handled $29.2 billion. Event contracts remained a larger revenue contributor, generating $173 million, up 11% quarter over quarter and more than sixfold from a year earlier.
Robinhood's total net revenue reached a record $1.42 billion, up 12% year over year, while net income fell 14% to $476 million. Shares fell 5.5% in after-hours trading to $89.22, leaving the stock down roughly 22% year to date. The market is weighing strong chain adoption against softer crypto revenue and profitability pressure.
Frequently asked questions
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How much revenue did Robinhood Chain generate in its first mainnet quarter?
Robinhood Chain generated $26 million in its first quarter on mainnet after launching July 1.
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What DEX activity did Robinhood Chain report?
The Arbitrum-built layer 2 processed more than $80 billion in DEX volume and generated over $50 million in fees during the quarter.
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How did Robinhood's crypto trading volume change?
Crypto trading volume rose 23% from the previous quarter to $49.8 billion, with $20.6 billion on Robinhood and $29.2 billion on Bitstamp.
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Why did crypto transaction revenue fall excluding Robinhood Chain?
Excluding Robinhood Chain, crypto transaction revenue fell 6% from the second quarter to $94 million, even as overall crypto trading volume increased.
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How did investors react to Robinhood's earnings?
Robinhood shares fell 5.5% in after-hours trading to $89.22. The stock was down roughly 22% year to date, despite record total net revenue of $1.42 billion.
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