Dogecoin is huge in Robinhood

Shareholders were able to submit questions ahead of yesterday’s earnings call. One of them asked whether Robinhood would soon offer a crypto wallet.  Dogecoin made up 62% of all crypto trading volume, compared to 34% in the first quarter. The company said it’s working on new crypto features and adding more coins. 

Robinhood to add coins on dogecoin and crypto interest 

“It’s something that our teams are working on,” answered CEO Vladimir Tenev. He added that it’s “tricky” to develop crypto wallets at scale, though it is a key priority. 

“Over time, as our various products achieve maturity, you should see continued diversification and less reliance on any one revenue stream, such as payment for order flow,” said CFO Jason Warnick. 

“We are already seeing promising signs of this in Q2 with payment for order flow for equities and options as a percentage of our revenue, declining to 38% from 64% in the prior quarter as customer interest in Crypto increased,” he added. 

PFOF is when brokerages funnel users’ trades to market makers which pay a fee to execute them.

Wall Street has been paying close attention to any regulation from Washington on the practice. HOOD recently rallied following a headline that Congress would shelve a ban on PFOF. 

The company reported total revenue of $565 million, a 131% year over year increase. 

“We don’t expect payment for order flow to be banned,” said Warnick during the conference call. 

Its net loss came in at $502 million, or $2.16 per diluted share. For the third quarter, Robinhood expects “seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer funded accounts than in the prior quarter.”

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Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre

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