Robinhood Markets Inc. entered the crypto realm a few years back in collaboration with the Chicago-based giant firm, Jump Trading. However, according to a source informed CoinDesk, Robinhood is no longer working with this company.
For Robinhood’s crypto sector to maintain its billion-dollar trading volume, it relies on market-making firms. Yet, Jump Trading is rumored to be withdrawing from the US market due to increasing regulatory scrutiny. On-chain data indicates that Jump and Robinhood parted ways at the beginning of July.
Ambiguity Surrounds the End of the Relationship Between Jump Trading and Robinhood
Information from the source supports unnoticed public evidence of a change in their relationship. In Robinhood’s financial reports, the affiliate Tai Mo Shan Ltd., which manages Robinhood’s order flow associated with Jump, hasn’t been mentioned since the fourth quarter of 2022.
As of now, according to public declarations made to the U.S. Securities and Exchange Commission, Robinhood continues a significant part of its crypto flow with competitive market-making firms like B2C2.
The exact reasons why Robinhood and Jump no longer collaborate remain unclear. For years, Jump has been one of the biggest market-making firms in traditional finance, displaying a dominant presence in markets owned by the Chicago Mercantile Exchange and CME Group.
The US government’s 2023 crypto regulation has made it challenging for Traditional Finance players to appear similarly in crypto. Jump had been the original firm supporting Robinhood’s crypto aspirations towards the 2021 bull market peak, ensuring the profitable operation of its service.