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Robinhood’s New Market-Making Partners

Robinhood Markets Inc, the company that made a splash with its fee-free crypto offering, has parted ways with market-making giant Jump Trading, according to insiders familiar with the situation. Originally, Robinhood’s entry into the crypto space was facilitated by Jump Trading, a significant player in traditional finance based in Chicago. However, this once symbiotic partnership appears to have eroded in the face of increased regulatory pressure. Blockchain data corroborates the split, indicating a separation in early July.

A Discreet Change of Strategy: Robinhood’s New Market-Making Partners

The signs of this erosion were subtle but discernable. Notably, Robinhood’s financial disclosures have not mentioned Tai Mo Shan Ltd., a Jump Trading subsidiary responsible for managing the broker’s order flow, since the fourth quarter of 2022. The void left by Jump Trading has been partially filled by other market-making entities such as B2C2, which now oversees the majority of Robinhood’s crypto transactions, according to filings with the U.S. Securities and Exchange Commission (SEC).

Jump Crypto is withdrawing from trading digital assets in the United States due to the crackdown by regulatory authorities.


Regulatory Chill Sends Market Makers into Disarray

The gradual withdrawal of Jump Trading, particularly from the U.S. market, comes amid increased government regulatory scrutiny over cryptocurrencies in 2023. This heightened oversight has complicated matters for traditional finance entities (TradFi) like Jump, which have been a dominant presence in mainstream financial markets, including the Chicago Mercantile Exchange.

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