Robinhood, the popular cryptocurrency and stock trading website, is set to expand its product offerings with the acquisition of credit card startup X1. The $95 million deal aims to provide Robinhood with an additional revenue stream and strengthen its existing user base.
Through the integration of X1’s income-based credit card, Robinhood plans to revolutionize its financial services ecosystem. This collaboration brings unique features such as enticing rewards and a risk-free trial period.
The acquisition of X1 reflects Robinhood’s commitment to diversifying its business portfolio and expanding beyond its core trading platform. By entering the credit card market, Robinhood aims to enhance its revenue streams and establish stronger connections with its vast user base.
This move comes as Robinhood addresses a decline in monthly active users and revenue in its cryptocurrency trading business. The company reported a significant decrease in cryptocurrency trading volume in May, with a 43% decline compared to the previous month. Daily average trading revenue (DART) also experienced a 22% decline in May, with a more substantial year-over-year drop of 53% in crypto trading.
In response to evolving regulatory conditions, Robinhood has adjusted its offerings, delisting three tokens as part of its routine review process. As a result, the platform now offers trading for 15 cryptocurrencies.
Through the acquisition of X1 and its entry into the credit card market, Robinhood aims to diversify its revenue sources, adapt to changing market conditions, and strengthen its position in the financial services industry.
