Robinhood has reported a record-high revenue for the fourth quarter, at $1.01 billion, a 37% quarterly increase. This was primarily due to a massive increase in cryptocurrency transaction fees in the current quarter, which stood at $358 million, a 491% increase from the previous quarter.

The increase in crypto revenue also brought a new interest in retail investing in digital assets. Robinhood’s highest cryptocurrency trading revenue of $233M was recorded in 2021, mainly due to DOGE trading. This notional volume was established in Q4 2024, and it was 400% higher than the volumes recorded in the previous year.

Robinhood expanded its offerings, adding 7 new cryptocurrencies for its users in the United States, as well as Ethereum staking in the European Union. This decision reflects its general goals of targeting a steadily expanding audience of retail and institutional investors in cryptocurrencies.

Strong financial performance and market response

Notably, the company reported a net income of $916 million, well above analyst expectations. This impacted the company’s stock price, leading to a 7% increase in its shares to $60 in after-hours trading after the earnings report. The shares’ value has been soaring since the beginning of 2024, registering a 360% increase.

The Assets Under Custody (AUC) also grew 88% to $193 billion yearly. This was attributed to steady net deposits and higher equities and cryptocurrency valuations.

In June 2024, Robinhood announced plans to acquire global crypto exchange Bitstamp, pending regulatory approvals. The acquisition is expected to be finalized in the first half of 2025, positioning Robinhood for deeper institutional market penetration.

Additionally, Robinhood revealed in June 2024 that it planned to buy global crypto exchange Bitstamp, pending regulatory approvals. The acquisition is expected to be completed in the first half of 2025, allowing Robinhood to penetrate the institutional markets better.

Robinhood also expanded its trading products beyond cryptocurrencies. The company launched index options for all users and in-app futures trading, offering products across stocks, energy, currencies, metals, and crypto. In addition, Robinhood Legend, the desktop platform for active traders launched in October 2024, has seen the addition of nearly 30 new indicators and expanded to the crypto side.

Regulatory challenges

While Robinhood’s Q4 was solid financially, the company faced regulatory headwinds. The Commodity Futures Trading Commission (CFTC) ordered Robinhood Derivatives to suspend its sports event contracts.

As a result, it decided to stop the rollout of the Pro Football Championship market that it had opened to a limited number of users. In addition, the company said it is committed to cooperating with regulators to make sure it is compliant.

Robinhood’s reported performance comes amid a broader crypto market rally. Several altcoins posted major gains, while Bitcoin hit $100,000 for the first time in Q4.

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Jupiter Exchange, a leading decentralized trading aggregator on Solana, announced plans to allocate 50% of its protocol fees toward repurchasing and locking JUP tokens for three years, starting Feb. 17.

The initiative, which aims to reduce circulating supply and increase long-term stability, is part of Jupiter’s broader strategy to enhance platform sustainability and drive deeper engagement within the Solana ecosystem.

Shift from token burns to locked buybacks

The exchange will roll out a dedicated dashboard next week, offering transparency into its buyback operations.

The dashboard will provide real-time tracking of repurchased JUP tokens and their subsequent locking process, allowing community members to monitor the initiative’s impact.

Jupiter’s latest buyback effort follows a similar initiative in January, when the exchange used 50% of protocol fees to buy back and burn JUP tokens, contributing to a 60% increase in the token’s market value.

However, the shift from burning to locking suggests a long-term commitment to supply management rather than short-term price action. By locking the repurchased tokens for three years, Jupiter aims to align incentives with sustained platform growth while maintaining liquidity for active trading.

Expanding Jupiter’s presence

The buyback initiative follows key discussions at the recent Catbedsault Conference, where Jupiter executives detailed upcoming platform enhancements and hinted at potential acquisitions to strengthen its role within the Solana ecosystem.

The exchange has positioned itself as a major player in Solana’s DeFi space, facilitating efficient token swaps and liquidity aggregation for traders and developers.

Jupiter’s decision to introduce a structured buyback program mirrors broader trends in the crypto industry, where exchanges and protocols increasingly use supply control mechanisms to stabilize token value and incentivize user participation.

Major platforms have employed similar strategies, including Binance Smart Chain’s BNB burns and MakerDAO’s buyback-and-burn approach for MKR governance tokens.

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