Robinhood, the stock trading platform, has agreed to acquire Bitstamp, a massive UK-based crypto exchange. The deal is set to close next year for a whopping $200 million. It will elevate Robinhood’s crypto arm to new markets, taking its presence outside the US and allowing it to service customers in the UK, Europe, and many other jurisdictions where the exchange holds licenses.
Bitstamp is one of the most used exchanges in Europe, and its acquisition will help Robinhood strategically grow in market share in the crypto 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 footprint outside of the US and welcome institutional customers to Robinhood.” The deal will position Robinhood Crypto to service institutional investors when institutional interest in digital assets is at unseen highs.
Bitstamp offers institutional staking and lending services alongside spot trading for 85 cryptocurrencies. Robinhood Crypto has already started offering services in Europe. Its eventual Bitstamp acquisition will take its expansion into this market to the next level by giving it access to both retail and institutional users.
The exchange’s long tenure in the crypto space, since its inception in 2011, has watched 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 customer base.
Robinhood will expand its offerings and services from its vast retail user base to institutions. Furthermore, this deal will help it remain a rapidly growing entity in the crypto markets despite the US SEC serving it a Wells Notice last month, claiming it offers unregistered securities. Thus, its expansion outside the US.