The Wall Street Journal writes, "Robinhood'​s Cash Riches Pay Off." They explain, "Rising rates are helping Robinhood Markets survive slow markets. There'​s still more to be done to truly thrive again.... Efforts to gather customer cash are also bearing fruit. Robinhood said that it has swept up about $​1.​5 billion worth of customer cash via its Gold accounts since it raised the rate for those customers to 3% in September. Cash sweeps, which move uninvested customer money to program banks, generated $​8 million in third-​quarter net interest revenue, up from just $​2 million in the second quarter." They tell us, "Overall, net customer deposits into Robinhood grew at a 17% annualized rate in the third quarter. It also generated $​20 million in net interest revenue from segregated customer cash and clearinghouse deposits." The update adds, "​Investors shouldn'​t get carried away, though. A portion of Robinhood'​s interest revenue doesn'​t come directly from customer activities but from its own corporate cash pile. Robinhood has more than $​6 billion worth on its balance sheet, which generated $​29 million in net interest revenue or more than a fifth of its total net interest revenue. That is a good way to help Robinhood on its path to profitability, but it doesn'​t necessarily represent deepening relationships with customers for investing and money management. Gathering cash is often a means to an end: Getting people to do something with it. Otherwise, in this environment it is just a competition for who can offer customers the highest rates. And, in a less-​upbeat sign, Robinhood says activity in margin borrowing and securities lending by customers is slowing so far in the fourth quarter."

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