Robinhood Open To Bolster Lending Business As CFO Admits Having ‘Big Ambitions Across Different Transaction Types’

Robinhood Markets (HOOD) Chief Financial Officer Jason Warnick said the company was open to venturing further into the lending business after getting positive feedback from members of its gold card regarding home loans.

“We've said over time (that) we want to be the place to custody all of our customers' assets and process all of their financial transactions, and I think lending plays right into this,” Warnick said in a conference call with analysts.

Robinhood is diversifying its business beyond its stock and cryptocurrency trading platform. CEO Vlad Tenev had told Stocktwits earlier this year that the company aims to become a consumer-focused bank by offering luxury financial services at an affordable price to subscribers of its Gold services, which were launched last year.

The subscribers of Gold can access mortgage loans at a discounted price through the company’s partnership with Sage Home Loans.

Retail sentiment on Stocktwits about Robinhood was in the ‘neutral’ territory at the time of writing.

Warnick said the initial response to the offering has been “tremendous,” and the company has “pretty big ambitions across all transaction types.”

Separately, Tenev said that the company is also open to reevaluating its stance on acquiring a banking license as it expands into lending products. In 2019, Robinhood had applied for a bank charter with the Office of the Comptroller of the Currency, but withdrew it.

Robinhood’s core businesses are also growing at a rapid pace, aiding the company to more than double its quarterly profit to $386 million, or $0.42 per share. 

The company’s transaction-based revenue rose 65% to $539 million from last year, with crypto revenue jumping 98%, and equities revenue growing 65%, as traders remained active amid economic uncertainty around Trump tariffs.

Tenev reiterated on Wednesday that the company remains focused on offering tokenized securities of private companies to its customers and remains in talks with regulators about such offerings.

It had courted controversy earlier this year after offering digital tokens of private companies such as OpenAI and SpaceX. However, Sam Altman-led OpenAI had said that it does not endorse any such offerings.

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