<![CDATA[<figure class="image"><img src="https://cimg.co/news/123718/327051/adobestock-askar-1.jpeg" srcset="https://cimg.co/news/123718/327051/responsive-images/adobestock-askar-1___media_library_original_1595_1108.jpeg 1595w, https://cimg.co/news/123718/327051/responsive-images/adobestock-askar-1___media_library_original_1200_834.jpeg 1200w, https://cimg.co/news/123718/327051/responsive-images/adobestock-askar-1___media_library_original_900_625.jpeg 900w, https://cimg.co/news/123718/327051/responsive-images/adobestock-askar-1___media_library_original_720_500.jpeg 720w, https://cimg.co/news/123718/327051/responsive-images/adobestock-askar-1___media_library_original_600_417.jpeg 600w, https://cimg.co/news/123718/327051/responsive-images/adobestock-askar-1___media_library_original_300_208.jpeg 300w" width="1595" class="content-img" alt=""><figcaption>Source: AdobeStock / Askar</figcaption></figure>Retail broker <a href="https://cryptonews.com/news/robinhoods-q2-earnings-show-18-decline-crypto-trading-revenue.htm">Robinhood</a> has reportedly ended its crypto business relationship with market maker <a href="https://cryptonews.com/news/top-market-makers-jane-street-jump-crypto-pare-down-us-crypto-operations-amid-regulatory-pressure.htm">Jump Trading</a>, and the regulatory environment in the US may be a reason. &nbsp;In 2018, Robinhood Markets Inc. decided to add cryptocurrency trading - but it needed help to do so, given the major trading houses' skepticism towards the novel market.&nbsp;This is where the Chicago-based Jump Trading LLC came in, which has been active in the crypto space since at least 2017.<a href="https://www.bloomberg.com/news/articles/2019-05-29/robinhood-s-free-crypto-trades-powered-by-chicago-s-jump-trading#xj4y7vzkg">According</a> to Bloomberg, it was this - now major - company that helped Robinhood's move into the space.So it comes as a surprise that their partnerships may have ended, especially as Robinhood relies on these types of market-making companies for its crypto trading, which involves billions in volumes - and Jumo Trading is one of the largest among them.&nbsp;That said, CoinDesk <a href="https://www.coindesk.com/business/2023/08/29/robinhood-and-jump-trading-no-longer-have-crypto-partnership-source/">reported</a>, citing a person familiar with the matter, that the two are indeed no longer doing business.This person suggested that the reason may be the US' unstable and unclear regulatory environment.&nbsp;Jump Crypto, which is the digital assets unit of Jump Trading, has started <a href="https://cryptonews.com/news/top-market-makers-jane-street-jump-crypto-pare-down-us-crypto-operations-amid-regulatory-pressure.htm">moving away</a> from the US market amid regulators' increased scrutiny.&nbsp;Notably, Jump Crypto was a significant backer of the failed <a href="https://cryptonews.com/news/sec-ripple-ruling-a-silver-lining-for-south-korean-prosecutors-in-do-kwon-case.htm">Terra/LUNA</a> project since 2019. Earlier this year, it was <a href="https://cryptonews.com/news/us-authorities-probe-jump-trading-jane-street-conversations-about-terrausd-bailout.htm">questioned</a> by US prosecutors about plans for a potential bailout of the <a href="https://cryptonews.com/news/terraform-labs-lawsuit-judge-rejects-motion-dismiss-sec-case.htm">TerraUSD</a> stablecoin.&nbsp;But that may not be all.&nbsp;The source also suggested that there may have been a change in the relationship between the two companies since at least last year.&nbsp;Since the last quarter of 2022, Robinhood&rsquo;s public filings with the US Securities and Exchange Commission (<a href="https://cryptonews.com/news/grayscale-crypto-asset-management-firm-wins-lawsuit-against-sec.htm">SEC</a>) have made no mention of Jump Trading's affiliate that handled Robinhood&rsquo;s order flow, Tai Mo Shan Ltd.The financial reports do, however, mention Jump Trading's competitors, such as B2C2, which now take care of Robinhood&rsquo;s crypto flow, the source said.Cryptonews reached out to Jump Trading and Robinhood for a comment.<h2 id="numbers-dropping">Numbers Dropping</h2>In June this year, Robinhood <a href="https://cryptonews.com/news/robinhood-reports-68-percent-decline-crypto-trading-compared-2022.htm">reported</a> that crypto trading had plummeted 68% compared to the previous year.&nbsp;Crypto trading was close to $2.1 billion in May 2023 compared to $6.6 billion a year before, according to the company's monthly operating data report.In its Q2 2023 earnings report, Robinhood <a href="https://cryptonews.com/news/robinhoods-q2-earnings-show-18-decline-crypto-trading-revenue.htm">revealed</a> crypto trading revenue of $31 million, representing an 18% decrease from the previous quarter's $38 million.&nbsp;Nonetheless, it achieved profitability for the first time since going public.Meanwhile, as <a href="https://cryptonews.com/news/today-in-crypto-sbfs-attorneys-ask-for-his-temporary-release-bybit-and-okx-exclude-sanctioned-russian-banks-from-payment-options-verified-scam-accounts-targeting-crypto-twitter-are-out-of-control.htm">reported</a> recently, per Arkham Intelligence data, Robinhood holds just over $3 billion in <a href="https://cryptonews.com/news/analysts-introduce-innovative-framework-decode-bitcoin-economy-bear-market.htm">bitcoin (BTC)</a> in a single wallet, making it the third-largest holder, behind major cryptocurrency exchanges <a href="https://cryptonews.com/news/binance-discontinues-peer-peer-service-with-sanctioned-russian-banks-heres-the-latest.htm">Binance</a> and <a href="https://cryptonews.com/news/class-action-lawsuit-against-tether-and-bitfinex-thrown-out.htm">Bitfinex</a>, with $6.4 billion and $4.3 billion in crypto, respectively.____<h3 id="learn-more">Learn more:&nbsp;</h3>- <a href="https://cryptonews.com/news/pro-crypto-robinhood-taps-former-barclays-executive-jordan-sinclair-as-ceo-for-uk-expansion.htm">Pro-Crypto Robinhood Taps Former Barclays Executive Jordan Sinclair as CEO for UK Expansion</a> - <a href="https://cryptonews.com/news/sec-crackdown-spurs-robinhood-review-its-crypto-operations.htm">SEC Crackdown Spurs Robinhood to Review Its Crypto Operations</a> - <a href="https://cryptonews.com/news/ark-invest-bets-big-meta-platforms-robinhood-reduces-coinbase-position.htm">ARK Invest Bets Big on Meta Platforms and Robinhood, Reduces Coinbase Position</a> - <a href="https://cryptonews.com/guides/bitcoin-history.htm">Bitcoin History</a>
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Robinhood Ends Crypto Partnership with Jump Trading – What's Going On?

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