Cryptocurrency trading continues to decline, Robinhood actively expands its business in Europe.

The online brokerage Robinhood announced its third-quarter financial report, benefiting from increased interest income due to the significant rate hikes by the Federal Reserve. The quarterly revenue rose 29% to $4.67 billion, but trading revenue declined by 11% to $1.85 billion, mainly due to the continued decrease in cryptocurrency trading volume.

Cryptocurrency Trading Continues to Decline

Robinhood's quarterly revenue increased by 29% to $467 million, primarily due to an increase in interest income, offsetting the overall decline in trading revenue.

In the third quarter, cryptocurrency trading revenue once again declined to $23 million, a 25% decrease from $31 million in the second quarter. This accounted for 12% of all trading revenue of $185 million. The custodied cryptocurrency assets decreased from $11.5 billion at the end of the second quarter to $10.2 billion.

Following the lawsuits against Binance and Coinbase, Robinhood reviewed the cryptocurrencies traded on its platform and announced the suspension of trading for Cardano ADA, Polygon MATIC, and Solana SOL starting at 7:00 p.m. ET on June 27. These cryptocurrencies were mentioned in the Binance and Coinbase lawsuits as securities.

Looking at the cryptocurrencies it holds, Bitcoin's proportion is becoming increasingly significant.

Continued Layoffs for Restructuring

In April, Robinhood laid off 330 employees, accounting for 9% of the total full-time workforce, and in August, it laid off 780 employees, accounting for 23% of the total full-time workforce. In response to the reduction in staff, Robinhood also closed two offices to further reduce operating costs.

The restructuring costs in April, including salaries, benefits, and severance pay related to employees, were fully recognized in the third quarter of 2022.

Continued Expansion of Brokerage and Cryptocurrency Business in Europe

Since July, Robinhood has been offering 24-hour market trading and acquired the X1 credit card platform, allowing customers to earn rewards each time they purchase stocks with a credit card.

In addition to launching brokerage services in the UK, Robinhood plans to introduce cryptocurrency trading in the UK and expand further into other regions of the European Union.

Due to lower-than-expected performance reports, Robinhood's stock price plummeted nearly 9% after hours on Wednesday.