Robinhood, the trading platform, is shifting its focus towards European users to grow its crypto services amid increasing legal challenges in the United States. On May 15, Robinhood launched its first crypto-staking product, specifically for European customers.

The announcement revealed that Robinhood users can now stake Solana (SOL) and earn a 5% yield through the app. Competing platforms like Kraken and Binance also offer SOL staking, with yields of up to 5% and 8%, respectively. Staking allows users to earn passive rewards from their holdings by supporting the network. By staking, users lock up their tokens to help validate transactions and secure network operations. The rewards from staking can fluctuate due to various factors, including network inflation, the total amount of SOL staked, validators' commission rates, and overall market conditions.

In addition to SOL staking, Robinhood introduced localized versions of its crypto services for users in Italy, Poland, and Lithuania. This includes educational content focusing on Bitcoin (BTC), USD Coin (USDC), and Avalanche (AVAX). The company emphasized its commitment to providing tailored services, with Johann Kerbrat, general manager of Robinhood Crypto, stating that European customers have expressed a clear demand for local language support and products that enable them to earn additional passive income.

Robinhood has experienced significant growth in crypto trading activity in the first quarter of 2024. The firm reported a 224% increase in crypto trading volumes, reaching $36 billion. Crypto-related services contributed to approximately 40% of its transaction-based revenue, helping Robinhood achieve its second consecutive profitable quarter with a net income of $157 million.

Despite the increasing market demand, Robinhood’s crypto operations still face numerous challenges. On May 6, the company received a Wells notice from the U.S. Securities and Exchange Commission (SEC), signaling potential enforcement action against its crypto division. The SEC's investigation focuses on Robinhood’s cryptocurrency listings and custodian operations for alleged securities violations. Consequently, Robinhood does not offer staking services in the United States and refrains from listing certain crypto tokens or providing lending services to avoid potential securities violations.