Robinhood supplies SOL stock to European markets
Trading platform Robinhood is targeting European users to expand crypto services amid legal challenges in the United States. On May 15, the company announced its first crypto-staking product for European customers only.
According to the announcement, Robinhood customers can now earn 5% through the app by holding Solana (SOL). Competitors offering SOL staking, including Kraken and Binance, advertise yields of up to 5% and 8% respectively.
Stickers receive rewards from their content in exchange for supporting the network. When holding, users lock their tokens to confirm transactions and protect network operations. Rewards from shares may change over time due to a number of factors, such as network inflation, SOL share size, verifiers' commission rates and market conditions.
Along with SOL staking, the company introduced local language versions for users in Italy, Poland and Lithuania, along with educational content focusing on Bitcoin (BTC), USD Coin (USDC) and Avalanche (AVAX).
“Our customers in Europe have been vocal about wanting local language support and an app that helps them earn more passive income,” said Johan Kerbrat, general manager of Robin Hood Crypto.
Robinhood sees an increase in crypto trading activity in the first quarter of 2024. The company saw a 224% rise in crypto trading volume to $36 billion. Roughly 40% of its transaction-based revenue came from crypto-related services, resulting in the company's second straight profitable quarter with net income of $157 million.
Despite growing market demand, Robin Hood's crypto business still faces many challenges. On May 6, the company received a notice of Wells from the US Securities and Exchange Commission (SEC), indicating an upcoming enforcement action against its crypto arm.
According to the filing, the SEC listed Robinhood's cryptocurrency and crypto custodian operations for security breaches. To protect against potential securities violations, the Company does not provide stock services or list certain crypto tokens or provide credit services in the United States.
Magazine: What do crypto market makers do? Liquidity, or fraud
