Markets
Robinhood Sweetens US Cryptocurrency Offering with Trading API
Robinhood has launched a cryptocurrency trading application programming interface (API) for users in the United States. The new API targets experienced cryptocurrency traders by enabling automated trading strategies, allowing users to quickly react to market movements and trends.
The API allows users to trade cryptocurrencies without having to open the file Robinhood application. It allows traders to write programs that interact with cryptocurrency markets in real time, using algorithms and strategies to execute trades.
Robinhood targets advanced cryptocurrency traders with this tool. The API is designed for those who appreciate high-level functions, allowing them to leverage their technical knowledge for complex strategies. It offers analytics, real-time data processing and security. To support users, Robinhood has created a dedicated website with API documentation and usage examples.
The API release comes in the middle Robinhood’s efforts to expand its market share and provide advanced trading tools to help customers navigate the cryptocurrency market.
In addition to the cryptocurrency trading API, Robinhood recently launched a staking service for Solana (SOL) holders in Europe. The service allows users to stake their SOL tokens via the Robinhood app and receive a 5% return.
Competitors like Kraken and Binance offer SOL staking with yields up to 5% and 8% respectively. The company also plans to introduce localized versions of its app for users in Italy, Poland and Lithuania in the coming weeks.
Robinhood reported a strong surge cryptocurrency trading activities in the first quarter of 2024, with a 224% increase in trading volumes to $36 billion. Nearly 40% of its transaction-based revenue came from cryptocurrency-related services, leading the company to its second consecutive profitable quarter with net profit of $157 million.
Despite growing demand, Robinhood’s cryptocurrency business faces several challenges. On May 6, the company received a Wells Notice by the US Securities and Exchange Commission (SEC), indicating potential enforcement action against its crypto arm.
The SEC investigation focuses on Robinhood’s cryptocurrency listings and custody trades for alleged securities violations. As a precaution, Robin Hood does not offer staking services in the United States, nor does it list certain crypto tokens or provide lending services.