[NEWS] Robinhood Considers Offering Crypto Futures Trading in the U.S. and Europe

Robinhood is considering offering cryptocurrency futures trading in the United States and Europe within the next few months. Bloomberg reported, citing people familiar with the matter.

Robinhood is considering launching its services in Hawaii, Puerto Rico and the U.S. Virgin Islands, and offering cryptocurrency futures trading in both the U.S. and Europe at the same time.

The expansion into Hawaii follows a regulatory change by the state's Department of Commerce. The state no longer requires a money transmitter license to operate cryptocurrency services. This opens the door for Robinhood to enter the cryptocurrency market, which has been known for its strict financial regulations.

This means that Robinhood Crypto is now available in all U.S. states except New York. However, the process of obtaining licenses in various U.S. jurisdictions has been long and has lasted for the past six years.

Expanding cryptocurrency services

Robinhood, a commission-free stock and cryptocurrency trading app, agreed to acquire cryptocurrency exchange Bitstamp for $200 million in June. The acquisition is expected to close in the first half of next year.

Robinhood's cryptocurrency business is growing fast. But it also faces regulatory hurdles in the U.S.

Robinhood Crypto was the driving force behind a big rise in first-quarter revenue in May. The company said it had received a Wells Notice from the SEC (U.S. Securities and Exchange Commission) regarding tokens traded on its platform.

Robinhood is also increasing its focus on cryptocurrency services in Europe, and launched a cryptocurrency staking service about two months ago.

Currently, it only supports Solana (SOL), but plans to introduce more cryptocurrencies in the future.

If the plan goes through, Robinhood may use Bitstamp's license to offer perpetual futures for Bitcoin and other cryptocurrencies in Europe. In the U.S., it is considering launching CME (Chicago Mercantile Exchange)-based Bitcoin and Ethereum futures.

For now, a Robinhood representative cautioned that these plans are not set in stone, telling Bloomberg that the company has “no imminent plans to launch these services.”

The potential move into crypto derivatives comes at a time of increased activity in the global market for these products.

Derivatives trading volume hit $3.69 trillion in May, surpassing $1.58 trillion in spot trading on centralized exchanges, according to the latest data from crypto research firm CCData.

Despite receiving a Wells Notice from the SEC earlier this year, Robinhood remains steadfast in its crypto ambitions. It has expanded its crypto strategy with the acquisition of Bitstamp and the recent acquisition of a futures brokerage license from Marex Group.

Reference: Bloomberg report
Image: Shutterstock

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