Robinhood CFO not Strategizing Putting Cash into Crypto Assets

• There are no plans to spend an ample amount of corporate cash into crypto assets by the retail platform Robinhood Markets Inc.
• Robinhood is monitoring the comments from the authorities regarding how the cryptocurrency is to be handled.
• The organization is getting benefits by sending the clients’ crypto-assets, stocks, and options orders to high-speed trading organizations.

No Corporate Cash Will be Spent – Robinhood

Robinhood Markets Inc. a retail trading platform, is not strategizing to spend any corporate cash for the purpose of acquiring any digital assets anytime soon, in spite of the escalating demand from the clients for such kind of investments, as per Jason Warnick, Chief Financial Officer of Robinhood.

Speaking at a news agency’s digital Summit of CFO network, Robinhood CFO stated that, there are no enthralling causes for the business strategically, to invest an ample amount of cash into the crypto assets. The comments of the individual echoed by other monetary chiefs, including Ned Segal, CFO of Twitter, stating that they are afraid of the dynamic nature of some virtual assets or restrictions around organizations’ policies of investment.

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As per a report, $51 Million were generated by Robinhood in revenue from trading into the crypto assets in its latest quarter, and are holding around $6.16 Billion in cash as well as cash equivalents by September’s end, which was escalated by $1.4 Billion during 2020’s end. Some prominent organizations like Block Inc. and Tesla Inc. have stuffed their corporate cash into crypto assets, while many others have maintained a safe distance from the crypto industry.

Monitoring is being done by the Robinhood, regarding any comments from the authorities on how the digital assets are to be treated. This is the reason that no additional coins have been added by Robinhood other than the existing ones, which involves litecoin, dogecoin, and bitcoin.

They have kept in mind that people still are having expectations from the organization to add more crypto assets, as per Warnick, reacting to a question regarding the addition of the Shiba Inu token on Robinhood.

It was claimed by the CFO that investing is gamified by Robinhood. Warnick stated while indicating to the element that sprayed digital confetti when the trade is completed by the users or a deposit is placed, gamification is frequently related by Robinhood. But the talks don’t go farther than the confetti example, which is now gone.

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Warnick also stated that the organization is gaining benefits by sending the digital asset, stock, and option orders of the clients to the high-speed trading organizations, an action called payment for order flow. Payment for order flow has assisted in bringing solo investors to the vanguard and taking part like they haven’t done before.

The critics of payment for order flow, involving Gary Gensler, Chair of SEC, makes an argument that conflict of interest is possessed by it for the brokerages, as the agents can either gather money to sell to their clients’ order flow or pass the following money to clients in the form of their trades’ price savings.