Markets
Robinhood to acquire Bitstamp and expand its global crypto reach
American financial services company Robinhood Markets, Inc. (Robinhood) has entered into an agreement to acquire Bit stampa global cryptocurrency exchange.
The strategic acquisition of the global exchange in a $200 million deal aims to better position Robinhood outside the United States and aims to bring Robinhood a trusted and reputable institutional business. It also aims to accelerate Robinhood Crypto’s expansion worldwide, despite warnings from the Securities and Exchange Commission (SEC) over its digital asset business.
Bitstamp was founded in 2011 and currently has offices in Luxembourg, 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 follows Robinhood’s announcement the launch of crypto trading in the European Union (EU).
Robinhood to increase its crypto presence
An acquisition of this magnitude will allow Robinhood to expand its crypto business worldwide. Bitstamp is an important business because its customers consistently trust the cryptocurrency exchange 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. In the United States specifically, the company will focus on enabling cryptocurrency exchanges between institutional clients.
Bitstamp is the the world’s oldest crypto exchange and allows trading between fiat and several 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, already established relationships, in addition to greater infrastructure and cutting-edge products.
“As the world’s oldest cryptocurrency exchange, Bitstamp is known as one of the most trusted and transparent crypto platforms in the world,” says JB Graftieaux, CEO of Bitstamp. “Integrating Bitstamp’s platform and expertise into the Robinhood ecosystem will provide users with an enhanced trading experience with a continued commitment to compliance, security and customer focus. »
See FinTech Magazine speaking to JB Graftieaux at Money 20/20 Europe in 2023 below: