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Robinhood to Acquire Bitstamp and Expand Global Cryptocurrency Reach
The American financial services company Robinhood Markets, Inc. (Robinhood) has entered into an acquisition agreement Bitstampa global cryptocurrency exchange.
The strategic acquisition of the global exchange in a $200 million deal is designed to better position Robinhood outside the United States (US) and aims to bring a reliable and reputable institutional business to Robinhood. It also aims to accelerate Robinhood Crypto’s expansion around the world, despite warnings from the Securities and Exchange Commission (SEC) over its digital assets business.
Bitstamp was founded in 2011 and currently has offices in Luxembourg, the United Kingdom (UK), Slovenia, Singapore and the United States. The acquisition is expected to close in the first half of 2025, subject to customary closing conditions and regulatory approvals.
The news comes on the heels of Robinhood’s announcement the launch of cryptocurrency trading in the European Union (EU).
Robinhood wants to grow its presence in the world of cryptocurrencies
An acquisition of this magnitude will allow Robinhood to grow its cryptocurrency business around the world. Bitstamp is a significant feat, as the cryptocurrency exchange enjoys the continued trust of its customers for reliable trade execution, deep order books, and API connectivity.
Robinhood says the acquisition will allow it to expand its crypto products into international markets. Specifically in the United States, the company will focus on enabling crypto-for-crypto trading among institutional clients.
Bitstamp is the the longest running cryptocurrency exchange in the world and allows trading between fiat and multiple cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Ripple. Already offering Bitstamp-as-a-service, institutional lending and staking, Robinhood will be able to enter an expanded crypto space with active and already established relationships, as well as greater infrastructure and industry-leading products.
“As the world’s longest-running cryptocurrency exchange, Bitstamp is known as one of the most trusted and transparent crypto platforms globally,” says JB Graftieaux, CEO of Bitstamp. “Bringing Bitstamp’s platform and expertise to the Robinhood ecosystem will provide users with an enhanced trading experience with an ongoing commitment to compliance, security and customer centricity.”
See FinTech magazine speaking with JB Graftieaux at Money 20/20 Europe in 2023 below: