Earlier today, Robinhood Crypto announced on X that it is expanding its offerings in Europe to now allow users in the European Union (EU) to transfer Solana (SOL-USD). In addition, users can earn a 1% bonus on deposits until November 30, 2024. This new feature adds to Robinhood’s support for over 20 cryptocurrencies, such as Bitcoin (BTC-USD) and Ethereum (ETH-USD), which were introduced to EU customers just a few weeks ago. As a result, shares of Robinhood (HOOD) gained in today’s trading.
Along with crypto transfers, Robinhood Crypto now allows staking for Solana directly in the app with an annual yield of 5.23%. Staking is a process where users can lock up their cryptocurrency to help maintain the blockchain network and, in return, earn rewards. Robinhood has seen good results with its Crypto platform in Europe. In fact, its user base has grown, with the most activity coming from Poland, Italy, and Lithuania.
However, this growth has come with regulatory challenges. In May, the SEC issued a Wells Notice to Robinhood Crypto, signaling that the regulator might take enforcement action against the company. A Wells Notice is essentially a formal warning from the SEC that it believes a company may have violated securities laws, giving the company a chance to respond before any potential charges are filed.
Robinhood Launches Margin Investing for Its UK Customers
In a separate development, Robinhood Markets also launched margin investing for its UK customers, which will allow them to borrow money to buy more stocks using their existing investments as collateral. Jordan Sinclair, president of Robinhood UK, said the new feature provides customers with greater flexibility to enhance their investment strategies. Robinhood is charging interest rates from 5.2% to 6.25% for this service, which the company says are some of the most competitive in the industry.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HOOD stock based on nine Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 194% rally in its share price over the past year, the average HOOD price target of $24.62 per share implies 8.71% downside risk.
