News
“an important step in the growth of our cryptocurrency business”
Robinhood, a popular retail trading platform, has entered into a deal to acquire Bitstamp, a UK-based cryptocurrency exchange
Robinhood trading platform announced It agreed to acquire the cryptocurrency exchange on Thursday Bitstamp. This move aims to expand Robinhood’s crypto presence globally and attract institutional clients through new product offerings, leveraging leverage Bitstamp’s consolidated relationshipsindustry-leading infrastructure and products.
The $200 million, all-cash deal, which will close in the first half of 2025, was advised by Barclays Capital and Galaxy Digital, highlighting professional guidance in the sale, per the press release.
“The acquisition of Bitstamp is an important step in the growth of our cryptocurrency business,” said Johann Kerbrat, CEO of Robinhood Crypto. “Bitstamp’s long-standing and highly trusted global exchange has shown resilience through market cycles… Through this strategic combination, we are better positioned to expand our presence outside of the United States and welcome institutional clients to Robinhood ”.
Robinhood did not mention any layoffs or personnel changes, but said the two companies will merge and collaborate to ensure consistent service, security and reliability for customers as they innovate and share knowledge across continents. Robin Hood stressed in the statement that transparency will be maintained throughout this process.
Implications
This merger is key to attracting retail investors to the cryptocurrency market, especially in the United States. Coinbase (COIN) holds a significant market share in the North American cryptocurrency market. This merger not only signals that Robinhood is serious about cryptocurrencies, but also provides competition to the retail cryptocurrency market.
We believe cryptocurrencies will fundamentally reorganize the financial system, and we’re buying into it @Bitstamp to accelerate our vision. We will soon join forces with Bitstamp’s global footprint, leading spot exchanges and industry-leading products such as crypto-as-a-service, institutional…
— Vlad Tenev (@vladtenev) June 6, 2024
Robinhood’s acquisition of Bitstamp marks the launch of Robinhood’s first institutional cryptocurrency business. Taking advantage of all this Bitstamp Offers, such as the Bitstamp-as-a-service white label solution, institutional lending, and staking, Robinhood can access pre-established infrastructure in the crypto space. Bitstamp’s flagship spot exchange, which offers over 85 tradable assets and its staking and lending products, will bolster Robinhood’s cryptocurrency offerings.