Robinhood has announced its plan to acquire the U.K.-based cryptocurrency exchange Bitstamp for $200 million in cash. This strategic move aims to enhance Robinhood’s global crypto presence and attract institutional clients. The acquisition is expected to be finalized in the first half of 2025, expanding Robinhood’s capabilities beyond the U.S.
Founded in 2011, Bitstamp is one of Europe’s largest and most regulated crypto exchanges. It further offers spot trading for over 85 cryptocurrencies and provides services like institutional lending and staking. Bitstamp holds more than 50 global licenses and registrations. It is also known for its commitment to compliance and security, undergoing regular audits by a global Big Four accounting firm.
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Strategic Expansion
Robinhood started offering cryptocurrency trading to European Union clients in December. The acquisition of Bitstamp is seen as a strategic move to expand Robinhood’s footprint and improve its service offerings. Johann Kerbrat, general manager of Robinhood Crypto, highlighted Bitstamp’s resilience through market cycles and its strong global reputation. Kerbrat further said,
“The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles … Through this strategic combination, we are better positioned to expand our footprint outside of the U.S. and welcome institutional customers to Robinhood.”
Additionally, Bitstamp’s CEO, JB Graftieaux, expressed enthusiasm about the merger. He emphasized the enhanced trading experience and continued commitment to compliance and customer-centricity that Bitstamp would bring to Robinhood’s ecosystem. Graftieaux and the existing leadership team will remain in place post-acquisition ensuring continuity and stability.
The acquisition is expected to increase competition in the crypto exchange market. Furthermore, this is particularly true against major players like Coinbase, which is also expanding globally. Robinhood’s recent financial performance shows its growing influence in the cryptocurrency sector.
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