Ondo Launches Tokenized Robinhood Shares as HOOD Stock Falls 7% After Earnings Miss
Ondo Finance has introduced tokenized Robinhood shares on Robinhood Chain as Robinhood Markets (HOOD) faced a 7% decline in after-hours trading following third-quarter results that fell short of Wall Street expectations. The earnings report showed record quarterly revenue of $1.42 billion, but revenue missed forecasts and diluted earnings declined 16%.
Robinhood shares closed at $94.56 before dropping to approximately $88.20 in after-hours trading. The results also highlighted a sharp contraction in cryptocurrency-related business, According to Robinhood’s earnings report, even as prediction markets and other trading products generated stronger revenue.
Ondo Adds Tokenized HOOD Shares to Robinhood Chain
Ondo Finance launched HOODon alongside 14 additional tokenized stocks and exchange-traded funds through Robinhood's Ethereum layer 2 network. The new offerings include blockchain-based versions of securities such as Nvidia, Apple and Tesla, according to Ondo's announcement.
HOODon gives eligible investors blockchain-based exposure to Robinhood shares through Ondo's tokenized asset infrastructure. The launch expands the range of traditional financial assets available through the network, placing tokenized equities alongside other activity on Robinhood Chain.
Eleven of the newly introduced assets also have corresponding Robinhood Stock Tokens supported by Uniswap v4 StablePair liquidity pools. These pools are designed to let traders exchange tokenized products representing the same underlying securities across participating platforms.
Robinhood Chain recorded more than $80 billion in decentralized exchange volume and $50 million in fees during its inaugural quarter, according to the source report.
Robinhood Crypto Revenue Drops 55%
Robinhood's cryptocurrency transaction revenue fell 55% year over year to $120 million, while total cryptocurrency trading volume declined 38% to $50 billion. Of that volume, $21 billion came through the Robinhood App and $29 billion through Bitstamp.
Prediction markets generated $173 million in revenue, exceeding cryptocurrency transaction revenue for the second consecutive quarter. The figures point to a shift in the company's transaction revenue mix as crypto trading activity weakened.
Other trading businesses reported growth. Options revenue rose 31% to $399 million, while equities revenue increased 41% to $121 million. Total transaction-based revenue reached $867 million, up 19% from a year earlier despite the downturn in cryptocurrency trading.
Robinhood Reports Record Revenue but Misses Estimates
Robinhood reported quarterly revenue of $1.42 billion, below Wall Street's $1.44 billion estimate. Diluted earnings fell 16% to $0.51, according to the earnings report. The combination of an earnings miss and weaker cryptocurrency performance coincided with the decline in HOOD shares.
The company also revised its annual adjusted expense outlook downward, setting a new range of $2.675 billion to $2.75 billion. Chief Financial Officer Shiv Verma reported quarterly net deposits of approximately $15.7 billion, while deposits during October exceeded $13 billion.
Robinhood reported 5.2 million Gold subscribers and $396 billion in total platform assets. Its quarterly results also included $67 million in unrealized losses, primarily associated with valuation adjustments to Robinhood Ventures Fund I.
Tokenization Expands as Robinhood's Business Mix Changes
The launch of HOODon adds another component to Robinhood's expanding tokenization activity, while the company's latest financial results show diverging trends across its businesses. Cryptocurrency transaction revenue weakened, but prediction markets, options and equities contributed to growth in other areas.
The source report did not provide a date for further tokenized asset launches or additional details about HOODon's future availability beyond eligibility requirements for investors.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.