According to recent reports, retail broker Robinhood has terminated a cryptocurrency-related partnership with traditional financial institution Jump Trading.
Robinhood and Jump Trading end their cryptocurrency collaboration!
As you follow on Kriptokoin.com, Jump Trading supported Robinhood’s entry into the world of cryptocurrencies a few years ago. Jump Trading is a giant in the traditional financial markets. According to a person familiar with the matter, Robinhood Markets Inc. no longer does business with Jump Trading. Robinhood’s no-fee cryptocurrency business relies on market makers to seamlessly maintain billions of dollars in trading volume. However, Jump has reportedly been withdrawn from the US market amid increased regulatory scrutiny.
On-chain data shows Jump and Robinhood parted ways in early July. Meanwhile, Robinhood has yet to make an official statement regarding the matter. The information from the source adds to little publicly noticed evidence that their relationship has changed. Robinhood’s financial reports have been published by Tai Mo Shan Ltd since the fourth quarter of 2022. He doesn’t mention his company. This company is Robinhood’s Jump subsidiary, which manages the order flow. Instead, the public broker is working with rival market-making firms, including B2C2, which is currently handling the lion’s share of Robinhood’s cryptocurrency, according to public filings with the U.S. Securities and Exchange Commission.
It is unclear for now why the cooperation ended
It’s not clear why Robinhood and Jump are no longer working together. For years, Jump had a dominant presence on the Chicago Mercantile Exchange and other CME Group-owned markets as one of the largest market makers in traditional finance. However, the US government’s 2023 crypto crackdown has made it difficult for TradFi players to stay visible in crypto. Jump was the original firm that supported Robinhood’s crypto goals and market maker for its lucrative service heading towards the 2021 bull market peak.
Robinhood is one of the biggest holders of this cryptocurrency
An analysis of Arkham Intelligence’s wallet data reveals that Robinhood has been pooling large Bitcoin holdings over the course of several months. Over the course of three months, he combined about 118,300 Bitcoins from several smaller wallets into this single wallet. This backlog demonstrates Robinhood’s significant commitment to the world’s most important cryptocurrency.
This particular wallet has recently caught the attention of watchers and market analysts due to its mysterious owner. The huge volume of Bitcoin contained in this wallet has led to a series of speculations and intrigues about the asset or assets behind it. Despite a lot of speculation, Robinhood has remained silent about these properties, leaving room for various speculations. Speculation surrounding the wallet’s ownership ranges from the possibility of financial giant BlackRock, which applied for a Bitcoin ETF earlier this year, to cryptocurrency exchange Gemini, which regulates the transfer of users’ assets in that wallet. These discussions underscore the curiosity in the cryptocurrency community about the true nature of major players’ involvement in the Bitcoin space.
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