Robinhood Ends Crypto Partnership with Jump Trading – What’s Going On?

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Retail dealer Robinhood has reportedly ended its crypto enterprise relationship with market maker Jump Trading, and the regulatory surroundings 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 most important 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 house since at the very least 2017.

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

So it comes as a shock that their partnerships could have ended, particularly as Robinhood depends on a lot of these 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 acquainted with the matter, that the 2 are certainly now not doing enterprise.

This individual instructed that the explanation stands out as the US’ unstable and unclear regulatory surroundings.

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 will not be all.

The supply additionally instructed that there could have been a change within the relationship between the 2 corporations since at the very least final 12 months.

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

The monetary studies do, nonetheless, point out Bounce Buying and selling’s opponents, equivalent to B2C2, which now handle Robinhood’s crypto movement, 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 accordance 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 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.

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