Robinhood CFO Jason Warnick says there are not compelling reasons to put meaningful amounts of corporate cash into crypto WSJWhatsNow
The CFO, who was appointed in November 2018, rebutted claims that the Robinhood platform gamifies investing. “The headline of gamification is often associated with Robinhood. But the conversation never goes deeper beyond the confetti example, which is now gone,” Mr. Warnick said, referring to a feature that sprayed virtual confetti when users completed certain trades or placed a deposit. “I think the conversation was overblown,” Mr. Warnick said.
Mr. Warnick said the company is benefiting from sending its customers’ stock, options and cryptocurrency orders to high-speed trading firms, a practice known as payment for order flow. “Payment for order flow has really helped bring individual investors to the forefront and participate like they haven’t before,” Mr. Warnick said.
Critics of the practice, including Securities and Exchange Commission Chairman Gary Gensler argue that it poses a conflict of interest for brokerages because brokers can either collect more money for selling their customers’ order flow or pass that money on to customers in the form of price savings on the trades they make. “As a CFO, I’m paying close attention to the concentration risk,” Mr. Warnick said.Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved.
Appeared in the January 13, 2022, print edition as 'Robinhood Platform Doesn’t Plan to Put Big Investments in Crypto.'
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