Is This Crypto Investment Company Taking on Robinhood?

Robinhood Markets (NASDAQ: HOOD) disrupted the financial services market when it created its commission-free stock trading platform and mobile app a decade ago. But now, it has some new competition.

Galaxy Digital (NASDAQ: GLXY), a cryptocurrency investment company previously focused on data center infrastructure and digital assets, announced on Oct. 6 it is launching GalaxyOne as a fintech platform app to offer retail investors commission-free stock trading, crypto trades, and cash deposit accounts.

Image source: Getty Images.

The move means the tables are turning on Robinhood, which has become one of the best fintech stocks on Wall Street by expanding from stocks into cryptocurrencies, prediction markets, and tokenization. Now Galaxy Digital, which has its roots in the blockchain and digital assets, is moving in on Robinhood's core stock trading market.

Galaxy Digital, which began trading on the Nasdaq exchange in May 2025, says that U.S. investors will be able to trade stocks and crypto on mobile apps for iOS and Android devices. Investors will also earn 4% on cash deposits, or 8% if they buy the company's premium service.

"We've spent years building institutional-quality infrastructure to serve the world's most sophisticated investors. Now, we're extending that edge to individuals," CEO Mike Novogratz said.

The GalaxyOne platform was developed as Fierce, a company that Galaxy Digital acquired last year.

What this means for Galaxy Digital

Galaxy Digital is much smaller than Robinhood -- it has $9 billion of assets on its platform, with 1,445 professional trading firms. Robinhood, which already built its retail customer base, has $304 billion in assets and 26.7 million customers. But that doesn't mean that Galaxy Digital is shut out of the fight.

The company reported $9.05 billion in revenue in the second quarter, with most of it tied up in transaction expenses. Net income was $30.5 million and $0.08 per share. The company ended the quarter, its first as a publicly traded company, with $2.6 billion in equity capital.

Based on Robinhood's success and its own history in buying and selling cryptocurrency, the company should be able to find a willing audience of retail investors. Galaxy Digital's brokerage will allow for commission-free trading of more than 2,000 U.S. stocks and exchange-traded funds, and trading of fractional shares will be available with a $10 trade minimum. And like Robinhood, GalaxyOne will allow retail investors to earn extra money by allowing their shares to be lent out.

GalaxyOne will also make trading of Bitcoin, Ethereum, and Solana available on its GalaxyOne Crypto platform.

What this means for Robinhood

Very little, at least for now. Robinhood has first-mover advantage and a massive U.S. audience that can trade stocks, crypto, and predictive markets, and utilize fractional shares. It's focused right now on increasing its presence in Europe, and its third-quarter report should be able to expand on the company's efforts overseas.

Galaxy Digital won't be a full-fledged competitor to Robinhood overnight, but its 4% yield on basic savings accounts will make the platform appealing. It will be interesting to see a crypto company try to duplicate Robinhood's brokerage business.

Patrick Sanders has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.