Markets
Robinhood Agrees to Acquisition Deal with Bitstamp, Aims to Expand into Global Crypto Markets
Robinhood, the stock trading platform, agreed to acquire Bitstamp, a huge crypto exchange based in the United Kingdom. The deal is expected to close next year for a staggering $200 million. This will elevate Robinhood’s crypto arm into new markets, taking its presence outside the US and allowing it to serve customers in the UK, Europe and many other jurisdictions where the exchange has licenses.
Bitstamp is one of the most used exchanges in Europe and its acquisition will help Robinhood strategically grow market share in the cryptocurrency exchange sector. With this deal, Robinhood Crypto will pose serious competition to exchange leaders like Binance, Coinbase, and OKX.
Johann Kerbart, general manager of Robinhood Crypto, stated: “Through this strategic combination, we are better positioned to expand our presence outside the US and welcome institutional clients to Robinhood.” The deal will position Robinhood Crypto to serve institutional investors as institutional interest in digital assets reaches unprecedented levels.
Bitstamp offers institutional staking and lending services along with spot trading of 85 cryptocurrencies. Robinhood Crypto has already started offering services in Europe. Its eventual acquisition of Bitstamp will take its expansion in this market to the next level, giving it access to retail and institutional users.
The exchange’s long tenure in the crypto space since its inception in 2011 has seen it grow to regulatory acceptance in at least 28 EU member states and a list of other countries outside the EU bloc. Its regulatory compliance has made it a favorite among institutions, offering it a robust institutional client base.
Robinhood will expand its offerings and services from its vast retail user base to institutions. Furthermore, this deal will help it remain a fast-growing entity in the crypto markets, despite the US SEC sending a Wells Notice last month alleging that it offers unregistered securities. Thus, its expansion outside the USA.