Robinhood Secures UK Crypto Registration: Will HOOD Stock Recover?

Popular exchange Robinhood is making major inroads in the crypto space. In the latest milestone, the exchange secured UK crypto registration before the new regulatory regime comes into play.

Investors expect a major reversal in HOOD stock. However, it has been underperforming so far in 2026.

Robinhood Secures U.K. Registration to Offer Crypto Services

Crypto-friendly trading platform Robinhood (NASDAQ: HOOD) has secured regulatory registration to offer crypto services in the United Kingdom.

This happened after the company’s UK subsidiary was added to the Financial Conduct Authority’s (FCA) register of cryptoasset firms. It was included on July 31.

This highlights that Robinhood has fully complied with the FCA’s AML requirements, as per the regulator’s existing crypto asset regime. More than 50 companies, including Ripple, Kraken, BlackRock, and BNY, are currently registered under the framework.

Interestingly, this approval for Robinhood comes just before the U.K.’s upcoming comprehensive crypto regulatory regime. The application window for the new authorization process will open by the end of September. It will close by the end of February.

Firms that register with the FCA have a major advantage in getting full authorization, as per the new FCA rules.

Robinhood Chain TVL Reaches $400 Million

The total value locked (TVL) for the Robinhood Chain has surged to nearly $400 million as part of the ongoing expansion of the network’s on-chain ecosystem.

Despite the growth, Robinhood Chain’s TVL remains at roughly 10% of Base’s current TVL. This shows the gap between the two blockchain networks and that Robinhood has a lot of catching up to do.

The development comes as Robinhood commands a market capitalization that is more than double that of Coinbase. Some market participants argue that the broader Robinhood Chain ecosystem remains undervalued until its TVL approaches parity with Base.

The HOOD stock is currently under investors’ observation as Robinhood reported strong financial results for Q2 2026. The firm reported a 32% surge in year-over-year revenue to $1.31 billion.

Moreover, the company posted transaction-based revenue of $776 million, up 44% from a year earlier, while net income increased 48% to $573 million. Adjusted EBITDA rose 35% to $741 million.

Robinhood also recorded a record $21.7 billion in net deposits during the quarter. At the same time, total platform assets climbed 32% year over year to $369 billion. Average revenue per user (ARPU) increased 24% to $187, and Robinhood Gold subscribers grew 39% to 4.8 million.

HOOD Stock Faces Major Selling Pressure

Despite the strong performance of the S&P 500 in 2026 and the strong fundamentals of Robinhood, the HOOD stock has been moving sideways. Over the last month, the stock price has dropped 26% after facing rejection at $120.

Analyst Mind Investor noted that he reduced his position by 50% at $119. Moreover, the analyst believes that the current pullback still has room to extend downside before another major buying opportunity emerges.

Mind Investor believes that investors should still wait patiently before a favorable market setup emerges.