Robinhood and Jump Trading End Cryptocurrency Partnership

Author: Danny Nelson, CoinDesk; Compiler: Songxue, Golden Finance

Robinhood Markets Inc., a retail brokerage that was pushed into the cryptocurrency space several years ago by Chicago-based giant Jump Trading, is no longer doing business, a person familiar with the matter noted.

Robinhood’s no-fee cryptocurrency business relies on market-making firms to keep its multibillion-dollar trading volume running smoothly. But according to reports ** due to heightened regulatory scrutiny, Jump has withdrawn from the US market. **

**On-chain data shows that Jump and Robinhood parted ways in early July. **

Their relationship has changed, and since the fourth quarter of 2022, Robinhood’s financial reports have not mentioned Tai Mo Shan Co., Ltd. (the Jump affiliate responsible for Robinhood’s order flow).

Instead, the listed broker is working with competing market-making firms including B2C2, which currently handles the bulk of Robinhood’s cryptocurrency order flow, according to a public filing with the SEC.

The reason why Robinhood and Jump are no longer working together is unclear. Jump has been one of the largest market makers in traditional finance for many years, with a dominant position on the Chicago Mercantile Exchange and other markets owned by CME Group.

Jump is the company that initially backed Robinhood’s cryptocurrency ambitions and anchored its lucrative service in market-making toward the peak of the 2021 bull market.