Vlad Tenev bullish on RIAs as Robinhood's TradePMR hits $50B

Robinhood reported record revenue of $1.31 billion and record net deposits of $21.7 billion in the second quarter and its chief executive Vlad Tenev used the company's earnings call to highlight the growth of its registered investment advisor channel.

Florida-based RIA custodian TradePMR was acquired by Robinhood for $300 million in a November 2024 sale. The Robinhood Advisor Network (RAN) referral program debuted this year, sending eligible Robinhood users with at least $250,000 in investable assets to RIAs that custody with TradePMR. Advisors from Grimes & Company and The Mather Group are among the RIAs to particpate in the referral program. 

"The Advisor Network, I think that's the beginning of what could be a really, really strong RIA integration," Tenev said on Robinhood's earnings call. "As you probably know, the RIA channel is a good, durable, consistent source of net deposits. We've been seeing good growth from multiple brokerage accounts."

The comment was delivered from Tenev as part of his answer to a question on Robinhood's net deposit trajectory that was asked by FD Partners analyst Craig Moore. In Q2 earnings, Robinhood reported assets under management for TradePMR to be $50 billion, after previously stating that TradePMR's assets under administration was "over $40 billion" at the time of its 2024 sale to Robinhood.

How the RIA market sees TradePMR

Industry observers are watching the TradePMR build-out with interest but tempered expectations. Jacob Zuller, analyst at investment research firm Third Bridge, said TradePMR is viewed within the advisor community as an up-and-coming player rather than a direct threat to Schwab and Fidelity's grip as the leading RIA custodians.

"Third Bridge experts see TradePMR as more attractive to smaller RIAs who cannot get good pricing from the incumbents," Zuller wrote in an email to InvestmentNews.

The Robinhood Advisor Network's pitch – routing retail customers to RIAs – also faces cultural headwinds, Zuller noted. "There is a line in the sand between the advisor, the custodian, and the client, and generally, advisors do not want their custodian in the relationship with the client," he said. "Robinhood's approach will attract younger, more upstart advisors looking to do things differently."

TradePMR founder Robb Baldwin previously described the in-app Robinhood Advisor Network as being a direct-to-advisor model for client referrals. 

Prediction markets emerge as a customer acquisition engine

Beyond the advisor channel, prediction markets are rapidly becoming one of Robinhood's most consequential growth products. Event contracts generated $156 million in revenue in Q2, up more than 10 times year-over-year, making prediction markets one of 13 Robinhood business lines now generating $100 million or more in annualized revenue.

Zuller said Third Bridge experts view the growth as still in its early stages. "Prediction markets will act as a customer acquisition funnel, leading to 50% of sportsbook users also opening an account to trade equities and derivatives through Robinhood's unified platform," he said, adding that the removal of the SEC's pattern day trading rule is an additional catalyst for Robinhood's active trader base.

Robinhood launched Rothera – a CFTC-licensed exchange and clearinghouse operated as a joint venture with Susquehanna International Group – in June during the FIFA World Cup, and the platform became a top-three designated contract market within its first month behind Kalshi and Polymarket. Zuller noted Robinhood also appears to be pursuing a multi-exchange strategy, with reports of a potential partnership with crypto.com's prediction markets platform.

Chief financial officer Shiv Verma said Robinhood is encouraged by the cross-product adoption of users. "If you're a prediction market customer, for example, you're actually more likely to have a retirement account with Robinhood," Verma said. "Any vector you come in – whether it's banking, prediction markets, credit card – you tend to adopt others."