Core Viewpoint - Robinhood is leveraging its regulatory licenses to expand into the Web 3.0 financial space, allowing for the tokenization of equity derivatives in Europe, which enhances its competitive edge in the brokerage industry [4][5]. Group 1: Revenue Model - Robinhood operates as a zero-commission brokerage, primarily earning through the bid-ask spread, which is narrower compared to other brokers [4]. - The company’s securities trading license is valuable, enabling it to engage in various financial activities [4]. Group 2: Regulatory Advantages - Robinhood acquired Bitstamp, gaining MiFID II investment company status, allowing it to operate a Multilateral Trading Facility (MTF) and legally facilitate trades of financial instruments recognized by MiFID [4]. - The MTF status enables Robinhood to provide services across the EU with a single regulatory approval, a significant advantage over competitors like Coinbase, which lacks this capability [4]. - Bitstamp has obtained a CASP license from Luxembourg, covering all aspects of crypto asset business, ensuring compliance with KYC/AML regulations [4]. Group 3: Trading Operations - Robinhood offers 24/7 trading, which theoretically exposes it to risk during non-trading hours, as it can only trade tokens when the stock market is closed [6]. - The company can partially mitigate this risk by connecting with market makers during night trading sessions [6]. Group 4: Market Potential - The new business model opens up significant opportunities, especially for European investors trading U.S. stocks, simplifying the process through the Bitstamp platform [8]. - The potential market space for this new business is varied among competitors, indicating a wide range of estimates regarding its success [8]. Group 5: Competitive Landscape - Other firms similar to Robinhood could emerge by combining brokerage services with Web 3.0 capabilities and obtaining MTF licenses in Luxembourg [9].