Hassan Maishera
TL;DR
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Robinhood and Jump Trading are no longer in a partnership.
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Jump has been moving away from the US market due to regulatory challenges.
Robinhood And Jump Trading No Longer Partners
Robinhood Markets Inc. and Jump Trading are no longer doing business together. This is according to CoinDesk, citing sources close to the matter.
Jump Trading was responsible for Robinhood entering the cryptocurrency market as it powered the crypto activities of the retail brokerage firm.
According to the sources, Jump Trading has been moving away from the US market due to regulatory challenges. On-chain data indicate that the two entities parted ways in early July.
The sources added that there was no public evidence to indicate that their relationship had ended. Since the fourth quarter of last year, Robinhood’s financial reports haven’t mentioned Tai Mo Shan Ltd., the Jump affiliate that handled Robinhood’s order flow.
Robinhood is now working with other market-making firms, including BC2C. BC2C currently handles the lion’s share of Robinhood’s crypto flow.
Jump has been one of the leading market makers in the traditional finance space. However, the U.S. government’s 2023 crypto crackdown has made it harder for TradFi companies like Jump Trading to continue providing services to crypto companies.
