Robinhood Acquires Credit Card Startup X1, Will Its Crypto Trading Volume Be Improved?

Robinhood, a well-known cryptocurrency and stock trading website, plans to expand its products significantly. It intends to acquire X1, a credit card company. This $95 million decision promises to provide the company with an extra revenue stream and strengthen its existing user base.

By integrating X1’s income-based credit card into its repertoire, Robinhood aims to revolutionize its financial services ecosystem. This collaboration brings distinctive features, including enticing rewards and a risk-free trial period.

Robinhood’s Strategic Expansion And Acquisition of X1

Robinhood’s unwavering dedication to growing outside its main trading platform is shown in its ongoing efforts to diversify its business portfolio. The recent acquisition of credit card fintech X1 is an important step forward in this attempt.

According to the official announcement, the inclusion of X1 to Robinhood’s list of acquired companies already includes MarketSnacks, Cove Markets, Binc, Say, and Ziglu. Vlad Tenev, CEO and co-founder of Robinhood, said:

With this purchase, we will be one step closer to meeting all of our clients’ critical financial needs. As a consequence of our collaboration with X1, Robinhood will be able to provide credit to our users.

By venturing into the credit card market, Robinhood aims to bolster its revenue streams and forge stronger connections with its expansive user base.

Recognizing the importance of diversification in sustaining long-term growth, the firm seeks to address the decline in monthly active users and revenue in its crypto trading business.

Robinhood Witnesses Decline In Crypto Trading Volume

In a recent update, the company disclosed a significant decrease in cryptocurrency trading volume in May. While the volume for equities and options remained high, the trading volume for cryptocurrencies plummeted to $2.1 billion, marking a 43% decline compared to the previous month.

Robinhood stock chart on 1D timeframe | Source: TradingView

The company also reported a decrease in the daily average trading reve

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Author: Ebo Victor

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