Robinhood Expands Cryptocurrency Services in New York State by Adding Tezos (XTZ)

Robinhood, a popular trading platform known for democratizing access to financial markets, has expanded its cryptocurrency services in New York State by adding Tezos (XTZ) to its list of available digital assets.

Robinhood has announced the addition of Tezos (XTZ) to its cryptocurrency offerings in New York State.

This development allows New Yorkers to buy, sell, and trade Tezos, enhancing the cryptocurrency’s accessibility in one of the most highly regulated financial markets in the world.

In a tweet on its official Twitter account, Robinhood announced the inclusion of Tezos alongside Uniswap (UNI) and Stellar (XLM), stating: “Uniswap ($UNI), Stellar ($XLM), and Tezos ($XTZ) are now available for New York State residents. You can now buy and sell 14 assets in New York State.”

Attention New York ? Uniswap ($UNI), Stellar ($XLM), and Tezos ($XTZ) are now available for New York State residents. You can now buy and sell 14 assets in New York State. pic.twitter.com/wMlpDcEx4e

The expansion brings the total number of cryptocurrencies available for trading in New York through Robinhood to 14. This move is significant, considering the strict regulatory environment for digital assets in the state, which has historically limited the availability of many cryptocurrencies to New York residents. Robinhood’s ability to offer a wider range of crypto assets, including Tezos, indicates the platform’s growing compliance and commitment to broadening access to decentralized finance (DeFi).

What Tezos Brings to the Table

Tezos is a decentralized blockchain network with a focus on smart contracts, similar to Ethereum. It stands out with its self-amending governance system, allowing the blockchain to upgrade itself through on-chain governance without the need for disruptive hard forks. This feature has made Tezos attractive to developers and institutions looking for a stable platform that can adapt and evolve over time.

The inclusion of Tezos on Robinhood in New York marks an important milestone for the cryptocurrency. New York is one of the most regulated financial markets globally, and gaining approval to operate in this state extends Tezos’ accessibility to a broader user base and also could be seen as lending credibility to the blockchain.

Robinhood’s Cryptocurrency Growth

Robinhood’s entry into cryptocurrency trading dates back to 2018, when the platform first introduced Bitcoin and Ethereum to its users. Since then, it has expanded its cryptocurrency offerings, making it easier for retail investors to access digital assets alongside traditional stocks, ETFs, and options trading.

As of the second quarter of 2024, Robinhood reported 11.8 million monthly active users, an increase of 9% year-over-year, according to the company’s quarterly financial report. The platform also reported $139.7 billion in assets under custody (AUC), up 57% year-over-year. Funded customers increased by 1.0 million to 24.2 million.

Robinhood’s cryptocurrency revenues reached $81 million in Q2 2024, up 161% year-over-year. The platform’s efforts to expand its cryptocurrency offerings, particularly in a challenging regulatory environment like New York, demonstrate its growing focus on digital assets.

Robinhood’s Services in a Nutshell

Robinhood’s cryptocurrency services are integrated into its broader ecosystem, allowing users to trade crypto assets with no commission fees. This approach has made the platform attractive to retail investors exploring the crypto market without incurring high transaction costs.

Founded in 2013, Robinhood is a financial services platform that provides commission-free trading for stocks, ETFs, options, and cryptocurrencies. The company’s mission is to “democratize finance for all,” aiming to make financial markets accessible to the average person through its user-friendly app and low-cost model.

Initially gaining attention for its zero-commission stock trades, Robinhood has expanded to include various financial products, such as cash management services, fractional shares, and its growing cryptocurrency offerings. In the crypto space, Robinhood has simplified the process of buying, selling, and holding digital assets for its users.

In terms of financial performance, Robinhood reported total net revenues of $682 million for the second quarter of 2024, an increase of 40% year-over-year. Net income increased to $188 million, or diluted earnings per share (EPS) of $0.21, compared to $25 million, or diluted EPS of $0.03, in Q2 2023.

The platform’s Average Revenue Per User (ARPU) increased by 35% year-over-year to $113. Moreover, Gold Subscribers—users who subscribe to premium features—grew by 750,000, or 61%, year-over-year to reach 2.0 million.