Robinhood: An Online Trading Platform Plans to buy Credit Card Company
Robinhood plans to buy credit card company X1 to boost income and user ties.
Robinhood, a well-known company for trading cryptocurrencies and stocks, plans to buy X1, a credit card company, for $95 million. This move aims to increase its income and strengthen its relationship with its users.
Robinhood plans to include X1’s credit card, which is based on income, in its services. This will add new features like special rewards and a risk-free trial period.
Robinhood is expanding its business beyond its main trading platform. The latest step in this expansion is the purchase of the credit card company X1. Other companies Robinhood has bought include MarketSnacks, Cove Markets, Binc, Say, and Ziglu.
Vlad Tenev, the CEO and co-founder of Robinhood, said that buying X1 will help Robinhood offer credit to its users. By entering the credit card market, Robinhood hopes to increase its income and strengthen its user base.
However, Robinhood recently reported a big decrease in cryptocurrency trading. In May, cryptocurrency trading volume fell to $2.1 billion, a 43% drop from the previous month.
Robinhood also reported a drop in daily average trading revenue (DART), a measure of the average number of trades per day that earn commissions or fees.
In response to changes in regulations, Robinhood adjusted its services and removed three tokens from its platform in June. This left only 15 cryptocurrencies available for trading on Robinhood.
The tokens that were removed were ADA from Cardano, MATIC from Polygon, and SOL from Solana. These were taken off the platform because of a legal issue with the U.S. Securities and Exchange Commission (SEC) about whether these tokens are securities.
