TL;DR
- Kraken’s Q2 revenue rose 18% YoY to $411.6M, but EBITDA fell 7% amid market turbulence; stablecoin trading dominance surged to 68% of volumes.
- Robinhood’s crypto revenue exploded 98% YoY to $160M, powered by its tokenization-focused L2 blockchain and Bitstamp acquisition targeting illiquid assets.
- Both exchanges vie to lead RWA tokenization, facing regulatory hurdles while Ethereum maintains a $7B market stronghold despite rising L2 competition.
Despite broader market turbulence, two major crypto platforms, Kraken and Robinhood, released robust Q2 earnings this week, signaling strategic pivots toward tokenization and global expansion. Kraken posted an 18% yearly revenue surge, while Robinhood’s crypto revenue nearly doubled, underscoring resilient investor interest amid macroeconomic headwinds.
Kraken’s Mixed Performance
Kraken reported $411.6 million in Q2 revenue, an 18% YoY increase, though adjusted EBITDA fell 7% to $79.7 million. The total exchange volume reached $186.8 billion, which is a 19% increase compared to last year. Meanwhile, assets under custody rose by 47% to $43.2 billion. The dip in quarterly volume (-11%) was attributed to seasonal slumps and U.S. tariff uncertainties. Notably, stablecoin/fiat spot volume dominance grew from 43% to 68%, reflecting a shift toward lower-risk trading.
Robinhood’s Crypto Explosion
Robinhood’s crypto revenue skyrocketed 98% YoY to $160 million, fueled by a 32% rise in trading volume ($28 billion). Total net revenue increased by 45% to $989 million, while net income rose by 105% to $386 million, surpassing Wall Street predictions. CEO Vlad Tenev linked this growth to Robinhood Chain, its new European tokenization-focused L2 blockchain, and its $200 million acquisition of Bitstamp, positioning it to tokenize “previously inaccessible” assets like private equity and real estate.
The Tokenization Arms Race
Both platforms are aggressively pursuing real-world asset (RWA) tokenization. Kraken plans commission-free stock/ETF trading in the U.K., Europe, and Australia by late 2024, alongside tokenized equity expansion. Robinhood aims to leverage its 25 million users and $1 trillion in custody assets to dominate U.S. tokenization of alternative investments. Tenev declared this opportunity “very difficult for competitors to replicate,” despite regulatory scrutiny in Lithuania and pushback from firms like OpenAI over equity-like tokens.
Ethereum’s Lingering Dominance
As Robinhood and Kraken develop their strategies, Ethereum continues to lead the RWA tokenization market with almost $7 billion in assets. Meanwhile, Layer 2 solutions such as ZKsync Era lag behind at $2.4 billion, capturing a 19% share of the market. The speculated $500 million funding round for Kraken, aiming for a $15 billion valuation before its IPO, along with Robinhood’s integration with Bitstamp, could potentially shake up this order, particularly as stablecoins become more popular.
