Crypto Giants Coinbase and Robinhood’s Split Signals Positive Shift in Fintech

Investors are betting that consumer trading of equity and crypto is rebounding and are consequently pushing the value of some former startups higher.

For a great number of private fintech startups that operate businesses similar to companies like Coinbase and Robinhood, this is great news. Consumer trading platforms have historically generated much of their revenue from trading, and more trading activity in turn leads to healthier businesses. And for startups that have yet to reach self-sufficiency, more revenue is a potential lifeline and a feather in the cap when they go out to raise more capital.


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This morning, let’s take a peek at recent news from Robinhood, remind ourselves just how many startups are out there offering consumer trading services directly or indirectly, and then riff through some market data to see if investors are being too optimistic or are really on to something.

What’s up with Coinbase and Robinhood?

Stock trading app Robinhood said today that it is bringing a zero-fee crypto trading service to the EU, not long after it launched its zero-fee equity trading services in the U.K.

The company, which raised billions while private and earned a $32 billion valuation in its 2021 IPO, is worth a far more modest $9.75 billion today. The company’s ups and downs reflect the fintech boom following COVID, when both retail investors and venture investors were very attracted to consumer-facing platforms that offered investing and savings services.