Robinhood Markets has reported a significant 32% year-over-year increase in its second-quarter crypto trading volume, reaching $28 billion, which underscores its expanding influence in the cryptocurrency sector.

The company's transaction-based crypto revenue nearly doubled during the quarter, surging 98% to $160 million, contributing to a total revenue increase of 45% to $989 million, both figures exceeding market expectations.

CEO Vlad Tenev emphasized that tokenization is a key innovation and a major component of Robinhood's strategic roadmap, reflecting the company's commitment to digital finance.

In line with its strategic initiatives, Robinhood is developing a Layer 2 blockchain based on Arbitrum and has begun staking Ethereum and Solana in the U.S.

The firm has also expanded its crypto offerings in Canada by acquiring WonderFi for $179 million and launched tokenized equities and crypto perpetual futures in the EU.

Robinhood finalized two significant acquisitions in the second quarter: WonderFi and Bitstamp for $200 million, with Bitstamp reporting $7 billion in notional trading volume post-acquisition.

Analysts at Mizuho Securities have noted Robinhood's aggressive product development strategy, suggesting it could capture a substantial share of the $600 billion total addressable market for crypto services.

Following the earnings report, Robinhood's stock rose by 2.7% to close at $106.10, resulting in a market capitalization of $90 billion, reflecting strong investor confidence.

Despite not providing specific figures on user growth or profitability, the increase in crypto trading volume indicates sustained engagement among its user base.

In the broader regulatory landscape, the U.S. House of Representatives has postponed votes on key crypto legislation, highlighting ongoing challenges in U.S. crypto regulation.

In a positive development for the industry, the U.S. Treasury Department and IRS have repealed a rule requiring crypto protocols to report customer transaction data, which is seen as favorable for privacy.

Meanwhile, the Bank of Korea has established a new virtual asset division to oversee the crypto market and stablecoin development, reflecting a growing interest in stablecoins.