Robinhood's Crypto Business Hits Record Lows as Layer-2 Blockchain Generates Significant Revenue

Retail investing platform Robinhood's crypto business has been in decline, despite the company's overall growth. In Q2 2026, its crypto revenue fell 38% year-over-year to $100 million, accounting for only 8% of total company revenue.

The most significant drop was seen in retail cryptocurrency trading volume on the Robinhood App, which decreased by 36% year-over-year and reached a quarterly low since Q3 2024. The decline is evident not just in trading activity but also in Assets Under Custody (AUC), where crypto AUC's share of total AUC has fallen to an all-time low of 7%.

Robinhood Chain, the company's Layer-2 (L2) blockchain, was launched on July 1, 2026. In its first month, it generated $3.6 million in Real Economic Value (REV), with an annualized value of approximately $43.2 million. The chain surpassed established networks like Polygon and Base, accounting for 38% of all L2 network revenue.

The early activity on Robinhood Chain is mainly driven by Meme coins, which accounted for 51% of spot trading volume in July. However, the company's main focus lies at the application layer, where it can leverage its user base and distribution capabilities to generate revenue. The USDG stablecoin, for example, has already generated approximately $10.5 million in annualized interest income.