Robinhood, Jump Trading End Crypto Partnership, CoinDesk Reports

Yueqi Yang and Muyao Shen, Bloomberg News

The Robinhood logo on a laptop computer arranged in the Brooklyn borough of New York, U.S., on Saturday, Dec. 19, 2020. Robinhood Markets will pay $65 million to settle allegations that it failed to properly inform clients it sold their stock orders to high-frequency traders and other firms, putting a major compliance headache behind the brokerage even as new ones emerge. Photographer: Gabby Jones/Bloomberg , Bloomberg

(Bloomberg) -- Robinhood Markets Inc. is no longer doing crypto business with market maker Jump Trading, according to the publication CoinDesk, citing a person familiar with the matter.

Jump didn’t respond to requests for comment from Bloomberg News on the report. Robinhood declined to comment. Jump Crypto, the digital-assets unit of Jump Trading, had been pulling back from the US market as regulators cracked down on the industry.

Robinhood, the popular retail brokerage app that was early to embrace digital assets, no longer counts Jump as one of its top market makers from whom it derives revenue, filings show. Tai Mo Shan, an entity of Chicago-based Jump Trading, has fallen out of the list of major market makers that individually contribute in excess of 10% of total transaction revenues to Robinhood in the first six months of 2023, according to a recent filing. That’s a decline from 15% in 2021 and 3% in 2022.

Robinhood receives payments from market makers such as Citadel Securities for routing orders to them, powering its zero-fee trading offering.

Read: Robinhood’s Free Crypto Trades Powered by Chicago’s Jump Trading (2019)