Robinhood rolls out SOL staking to European markets
Trading platform Robinhood is targeting European users to expand its crypto services as legal challenges loom in the United States. On May 15, the company announced its first crypto-staking product, exclusively for European customers.
According to an announcement, Robinhood customers can now stake Solana (SOL) and receive a 5% yield through the app. Competitors offering SOL staking, including Kraken and Binance, advertise yields of up to 5% and 8%, respectively.
Stakers receive passive rewards from their holdings in exchange for supporting the network. When staking, users lock up their tokens to validate transactions and secure the network operations. Rewards from staking can change over time due to several factors, such as network inflation, the amount of SOL staked, validators’ commission rates, and market conditions.
Along with SOL staking, the company introduced local-language versions of its crypto services for users in Italy, Poland and Lithuania, along with educational content focusing on Bitcoin (BTC), USD Coin (USDC), and Avalanche (AVAX).
“Our customers in Europe have told us loud and clear that they want an app that provides local language support and products that help them earn additional passive income,” said Johann Kerbrat, general manager of Robinhood Crypto.
Robinhood has seen a surge in crypto trading activity in the first quarter of 2024. The firm posted a 224% increase in crypto trading volumes to $36 billion. Approximately 40% of its transaction-based revenue was generated by crypto-related services, resulting in the firm’s second straight profitable quarter with a $157 million net income.
Despite the growing market demand, Robinhood’s crypto business still faces many challenges. On May 6, the company received a Wells notice from the U.S. Securities and Exchange Commission (SEC), indicating an incoming enforcement action against its crypto arm.
According to the filing, the SEC investigated Robinhood’s cryptocurrency listings and crypto custodian operations for alleged securities violations. As a precaution against possible securities violations, the company does not offer stake services in the United States, nor does it list some crypto tokens or provide lending services.
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