Retail trading platform Robinhood Markets Inc. has no immediate plans to spend large amounts of corporate cash on crypto assets, despite growing user demand for such investments, said Chief Financial Officer Jason Warnick. Says.
“There is no strategic reason for our business to put a meaningful amount of corporate cash into cryptocurrencies,” Warnick said at the Wall Street Journal’s Virtual CFO Network Summit on Wednesday. His comment is Twitter Inc. Same as the comments of other Treasury Officers, including CFO Ned Segal, he said he was concerned about the volatile nature of some of these assets and restrictions on corporate investment policies.
Robin Hood wants to buy Robin Hood shares of Robin Hood
Robin Hood reported $ 51 million in revenue from crypto transactions in the last quarter and held approximately $ 6.16 billion in cash and cash equivalents from $ 1.4 billion at the end of 2020 to the end of September. Block Inc. has put corporate cash into Bitcoin or other virtual assets, but so far many other CFOs remain on the sidelines.
Mr Warnick said Robin Hood is on the lookout for comments from regulators on how to handle crypto assets. As a result, Robin Hood has not added any new coins or currencies in addition to what it already offers, such as Bitcoin, Dogecoin and Litecoin.
In response to a question about when Robin Hood would add Shiba Inu coins to the platform, Warnick said, “It’s lost to us that customers and others want us to add coins. I don’t. “
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“We are a regulated company in a regulated industry and we believe it is important to be a little more clear from the regulatory authorities,” Warnick said.
The CFO, appointed in November 2018, refuted the allegations that Robin Hood’s platform is betting on investment. “Gamification headlines are often related to Robin Hood, but the conversation doesn’t go deeper than the confetti example,” Warnick said, allowing users to complete certain transactions or deposit. Mentioned the ability to spray virtual confetti when placed. .. “I think the conversation was exaggerated,” Warnick said.
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Warnick said the company benefits from sending clients stock, options and cryptocurrency orders to high-speed trading companies. This is known as order flow payment. “Payment of order flows really helped bring individual investors to the forefront and participate differently than before,” Warnick said.
Critics of this practice, including Securities and Exchange Commission Chairman Gary Gensler, allow brokers to collect more money to sell their client’s order flow or pass that money to their clients in the form of price cuts. Because it claims to bring conflicts of interest to brokers about the transactions they make. “As CFO, I pay close attention to concentration risk,” Warnick said.