HomeCoinsAltcoinsRobinhood Ends Crypto Partnership with Bounce Buying and selling – What's Going On?

Robinhood Ends Crypto Partnership with Bounce Buying and selling – What’s Going On?

Supply: AdobeStock / Askar

Retail dealer Robinhood has reportedly ended its crypto enterprise relationship with market maker Jump Trading, and the regulatory setting within the US could also be a purpose.  

In 2018, Robinhood Markets Inc. determined so as to add cryptocurrency buying and selling – but it surely wanted assist to take action, given the main buying and selling homes’ skepticism in the direction of the novel market. 

That is the place the Chicago-based Bounce Buying and selling LLC got here in, which has been lively within the crypto area since a minimum of 2017.

According to Bloomberg, it was this – now main – firm that helped Robinhood’s transfer into the area.

So it comes as a shock that their partnerships might have ended, particularly as Robinhood depends on these kind of market-making corporations for its crypto buying and selling, which entails billions in volumes – and Jumo Buying and selling is among the largest amongst them. 

That stated, CoinDesk reported, citing an individual accustomed to the matter, that the 2 are certainly now not doing enterprise.

This particular person urged that the rationale will be the US’ unstable and unclear regulatory setting. 

Bounce Crypto, which is the digital property unit of Bounce Buying and selling, has began moving away from the US market amid regulators’ elevated scrutiny. 

Notably, Bounce Crypto was a big backer of the failed Terra/LUNA undertaking since 2019. Earlier this 12 months, it was questioned by US prosecutors about plans for a possible bailout of the TerraUSD stablecoin. 

However that might not be all. 

The supply additionally urged that there might have been a change within the relationship between the 2 corporations since a minimum of final 12 months. 

Because the final quarter of 2022, Robinhood’s public filings with the US Securities and Change Fee (SEC) have made no point out of Bounce Buying and selling’s affiliate that dealt with Robinhood’s order circulation, Tai Mo Shan Ltd.

The monetary experiences do, nevertheless, point out Bounce Buying and selling’s opponents, comparable to B2C2, which now care for Robinhood’s crypto circulation, the supply stated.

Cryptonews reached out to Bounce Buying and selling and Robinhood for a remark.

Numbers Dropping

In June this 12 months, Robinhood reported that crypto buying and selling had plummeted 68% in comparison with the earlier 12 months. 

Crypto buying and selling was near $2.1 billion in Could 2023 in comparison with $6.6 billion a 12 months earlier than, in keeping with the corporate’s month-to-month working knowledge report.

In its Q2 2023 earnings report, Robinhood revealed crypto buying and selling income of $31 million, representing an 18% lower from the earlier quarter’s $38 million. 

Nonetheless, it achieved profitability for the primary time since going public.

In the meantime, as reported just lately, per Arkham Intelligence knowledge, Robinhood holds simply over $3 billion in bitcoin (BTC) in a single pockets, making it the third-largest holder, behind main cryptocurrency exchanges Binance and Bitfinex, with $6.4 billion and $4.3 billion in crypto, respectively.


Be taught extra: 

Pro-Crypto Robinhood Taps Former Barclays Executive Jordan Sinclair as CEO for UK Expansion
SEC Crackdown Spurs Robinhood to Review Its Crypto Operations

ARK Invest Bets Big on Meta Platforms and Robinhood, Reduces Coinbase Position
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