Robinhood(US:HOOD) GOLDEN SUN SECURITIES·2025-10-10 13:43Investment Rating - Maintain Buy Rating [5] Core Viewpoints - Robinhood Markets, Inc is positioned to leverage its innovative capabilities in the cryptocurrency sector, particularly with the introduction of tokenized stocks and the acquisition of Bitstamp, which enhances its regulatory compliance and market reach [2][4][27]. Summary by Sections Company Overview - Robinhood aims to democratize finance by lowering investment barriers for retail investors, offering commission-free trading and a user-friendly platform [11][12]. - The company has a diverse business model that includes brokerage services, cryptocurrency trading, and subscription services [13][14]. Development of Cryptocurrency Business - Robinhood launched its cryptocurrency trading services in 2018, and by Q2 2025, its cryptocurrency trading revenue reached $160 million, accounting for 16% of total revenue, up from approximately $5 million in Q2 2020 [2][26]. - The company has expanded its offerings with the introduction of the Robinhood Wallet and plans to enter the tokenized stock market [2][4]. Peer Comparison - Compared to competitors like Coinbase and Gemini, Robinhood's cryptocurrency revenue is still relatively small, but it boasts a significantly higher number of monthly active users, with 14.9 million in Q4 2024, which is 1.8 times that of Coinbase [3][55]. - Robinhood's average revenue per user (ARPU) surpassed $50 in Q2 2024, indicating stable user monetization [64]. New Business Ventures: Tokenized Stocks - Robinhood plans to offer tokenized stock trading in Europe, which could enhance its market presence and attract a broader customer base [92]. - The introduction of tokenized stocks is expected to facilitate 24/7 trading and lower barriers for non-U.S. investors to access U.S. assets [94]. Market Opportunities and Challenges - The supportive regulatory environment under the Trump administration is seen as a potential catalyst for Robinhood's growth in the cryptocurrency sector [30][31]. - However, challenges such as trust issues regarding tokenized stocks and regulatory scrutiny from European authorities could pose risks to the business [95].