Robinhood, a well-known cryptocurrency and stock trading website, plans to expand its products significantly. It intends to acquire X1, a credit card company. This $95 million decision promises to provide the company with an extra revenue stream and strengthen its existing user base.

By integrating X1’s income-based credit card into its repertoire, Robinhood aims to revolutionize its financial services ecosystem. This collaboration brings distinctive features, including enticing rewards and a risk-free trial period.

Robinhood’s unwavering dedication to growing outside its main trading platform is shown in its ongoing efforts to diversify its business portfolio. The recent acquisition of credit card fintech X1 is an important step forward in this attempt.

According to the official announcement, the inclusion of X1 to Robinhood’s list of acquired companies already includes MarketSnacks, Cove Markets, Binc, Say, and Ziglu. Vlad Tenev, CEO and co-founder of Robinhood, said:

With this purchase, we will be one step closer to meeting all of our clients’ critical financial needs. As a consequence of our collaboration with X1, Robinhood will be able to provide credit to our users.

By venturing into the credit card market, Robinhood aims to bolster its revenue streams and forge stronger connections with its expansive user base.

Recognizing the importance of diversification in sustaining long-term growth, the firm seeks to address the decline in monthly active users and revenue in its crypto trading business.

In a recent update, the company disclosed a significant decrease in cryptocurrency trading volume in May. While the volume for equities and options remained high, the trading volume for cryptocurrencies plummeted to $2.1 billion, marking a 43% decline compared to the previous month.

The company also reported a decrease in the daily average trading revenue (DART), a key metric that measures the average trade per day generating commissions or fees.

DART witnessed a 22% decline in May, with a more pronounced year-over-year drop of 53%, specifically in crypto trading.

In response to evolving regulatory conditions, the firm recently adjusted its offerings. The platform delisted three tokens in the second week of June as part of its routine review process.

This decision resulted in only 15 cryptocurrencies being available for trading on the platform.

The delisted tokens, namely Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL, were associated with the recent legal action by the U.S. Securities and Exchange Commission (SEC) against industry giants Coinbase (COIN) and Binance. The U.S. regulator claims that these tokens are securities under its jurisdiction.

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