Robinhood Shares Surge 10% on Crypto Expansion

Robinhood, the popular retail trading app, has announced a significant expansion into the cryptocurrency market, leading to a 10% surge in its shares and reaching all-time highs. The company has launched US stock and exchange-traded fund (ETF) tokens in the EU, issued on the Ethereum (ETH) layer-2 blockchain Arbitrum (ARB). Additionally, Robinhood plans to develop its own proprietary layer-2 solution on Arbitrum.

Johann Kerbra, GM and SVP of Robinhood Crypto, emphasized the company's mission to make crypto accessible to a broader audience. "Crypto was built by engineers for engineers, and has not been accessible to most people. We’re onboarding the world to crypto by making it as easy to use as possible—with the goal of bringing powerful tools into one intuitive platform," he stated.

In addition to stock tokens, Robinhood is introducing perpetual crypto futures in the EU and crypto staking services in both the EU and the US. These new offerings are part of Robinhood's broader strategy to integrate crypto into the global financial system. "Our latest offerings lay the groundwork for crypto to become the backbone of the global financial system," said Robinhood Chairman and CEO Vlad Tenev.

Last week, Robinhood announced the rollout of micro-futures for Bitcoin (BTC) and other top crypto assets. In a podcast interview last year, Tenev discussed Robinhood's ambitions to merge AI and wealth management, positioning the company as a leader in both crypto and AI. "I think there’s two big technology trends that could affect financial services. One is crypto, the other is AI. And Robinhood will be a leader in both. I mean we’re already a leader in crypto, and we’re making lots and lots of investments to make sure we’re the leader in AI," he said.

Tenev also highlighted Robinhood's recent acquisition of Pluto, an AI-based investment research product, which allows users to input information about companies and investments. This acquisition further solidifies Robinhood's commitment to leveraging AI in its financial services offerings.

Robinhood's expansion into crypto and AI reflects its strategic vision to provide a comprehensive and user-friendly platform for financial services. By integrating stock tokens, perpetual crypto futures, and crypto staking, Robinhood aims to make crypto more accessible and intuitive for a wider audience. The company's focus on AI and wealth management further positions it as a leader in the evolving financial landscape.