The online broker Robinhood disclosed its January 2023 operational figures on Wednesday. Most categories reported increased figures, with Assets Under Custody increasing by 20% to $74.7 billion. In addition, notional trading volumes increased across the board.
Equity volumes increased by 19% to $46 billion, while options contracts increased by 10%. But, the report’s most astounding result came from bitcoin trading volumes. After a significant decrease in the aftermath of the FTX bankruptcy in November 2022, they were up 95% in January 2023 to $3.7 billion. Since 2018, the broker has offered Crypto trading.
What happened previously?
Robinhood‘s Crypto revenues shrunk dramatically in 2022, and overall trading activity has decreased. In the first quarter of last year, net revenues decreased by 43%, while Crypto trading fell by almost 40%. The third quarter (12% fall in Crypto-related earnings) and fourth quarter (24% decline) were similarly dismal.
Furthermore, the New York State Department of Financial Services (NYDFS) has defeated Robinhood, fining the company $30 million in August on charges of money laundering and cybersecurity violations.
The platform also joined the long list of Crypto-related companies that have laid off some of their employees as a result of negative macroeconomic conditions and the market drop. It laid off 9% of its workforce in April and 23% a few months later.
The primary reason for the layoffs, according to CEO Vlad Tenev, is growing inflation in the United States. He promised to leave employees that they would continue to receive their normal pay and perks (including stock transfers). The corporation also pledged to provide aid in seeking alternative work options, financial compensation, and dental and vision insurance premiums.