Mentioned:
Robinhood is getting into a new business: underwriting IPOs.
What’s happening:
- Robinhood (NASDAQ: HOOD) has landed regulatory approval to be able to underwrite IPOs
Why it matters:
- The new approval will allow Robinhood to directly underwrite offerings for companies that are going public while continuing to allocate shares to users on the Robinhood platform
Going deeper:
- The new regulatory approval was granted to Robinhood Securities which is the broker-dealer arm of Robinhood
- Robinhood has been highly successful at offering users access to new IPOs directly from their platform, including notably having a allocation in Elon Musk’s historic $75B USD IPO for SpaceX (NASDAQ: SPCX)
The intrigue:
- Robinhood also just recently made major waves when they co-developed the mobile app for Trump Accounts which are a new tax advantaged investment account for children in America that are being seeded with $1,000 USD from the United States Treasury
