Markets
Robinhood crypto head says Bitstamp will help attract wealthy investors – DL News
- The fintech giant announced it would buy crypto exchange Bitstamp for around $200 million.
- “It makes perfect sense for Robinhood to enter this space,” said Johann Kerbrat, chief executive officer of Robinhood Crypto.
Robinhood, the publicly traded fintech company that allows users to buy and sell stocks and cryptocurrencies, announcement On Thursday, he planned to buy crypto exchange Bitstamp for around $200 million.
Best known for its role in the memestock craze of 2021, Robinhood is aimed at retail crypto investors or small traders.
Now it hopes to attract hedge funds, banks and other trading heavyweights, according to Johann Kerbrat, chief executive of Robinhood Crypto.
“We are adding, for the first time, a trusted company with established relationships,” he told DL News, referring to Bitstamp and its partners. existing service for rich traders. He added: “It makes perfect sense for Robinhood to enter this space. »
Robinhood’s push to expand to a broader set of customers comes amid the re-emergence of crypto as an important source of liquidity.
The company’s crypto trading revenue increased from $43 million in the fourth quarter to $126 million in the first three months of 2024.
Its fees related to crypto trading in the first quarter were close to a record, just behind the $233 million earned in mid-2021.
The agreement also comes in a context letter from the U.S. Securities and Exchange Commission last month, warning that Robinhood is the target of potential litigation over its crypto business.
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Potential expansion into Asia
Kerbrat not only discussed Bitstamp’s ties to institutional traders, but also its international reach.
The crypto exchange claims to have over 50 active licenses worldwide, including Asia.
Robinhood has expanded its crypto trading arm to Europe. When asked if its planned acquisition of Bitstamp meant Asia would be the next step, Kerbrat did not respond.
“The goal is to continue to push on the international stage,” he said. “And absolutely, Asia is an attractive market.”