Robinhood Weighs Its First Sale of Card Receivables-Backed Bond

Robinhood Markets is weighing the sale of between $400 million and $500 million of asset-backed securities, including a bond backed by bills for its branded consumer credit cards, Bloomberg reported Monday (July 13), citing unnamed sources.

The company is currently gauging investor interest in the bond, which would be its first such offering, according to the report. Robinhood did not immediately reply to PYMNTS’ request for comment.

According to the Bloomberg report, Capital One Financial sold $3.85 billion in bonds backed by card receivables last week. Robinhood announced June 25 that it closed an offering of $2.2 billion of 0.00% convertible senior notes due 2029. The company said at the time in a press release that the transaction enhanced its “strategic flexibility to invest for future growth” and that it would use about $290 million of the proceeds to repurchase outstanding Class A common stock.

PYMNTS reported in April that Robinhood’s first quarter earnings reflected the company’s deliberate pivot from a trading app tied to retail speculation toward an integrated financial platform built to capture long-term customer value. “Driven by our relentless product velocity and innovation, Robinhood is increasingly positioned at the center of our customers’ financial lives, just as we enter the early innings of the Great Wealth Transfer,” Robinhood Chairman and CEO Vlad Tenev said during the earnings call.