Robinhood to buy crypto exchange Bitstamp in effort to expand outside the US
|-
Trading platform Robinhood has agreed to buy U.K.-based crypto exchange Bitstamp for $200 million in cash.
-
U.K.-based Bitstamp was founded in 2011 and is one of the largest crypto exchanges in Europe.
-
The acquisition is hoped to allow Robinhood to expand its crypto presence globally and attract institutional clientele.
Trading platform Robinhood (HOOD) has agreed to acquire crypto exchange Bitstamp as it looks to expand its crypto presence globally and attract institutional clients through new product offerings, the company announced Tuesday.
The $200 million all-cash deal is expected to close in the first half of 2025, according to the press release. Barclays Capital and Galaxy Digital advised Robinhood and Bitstamp on the sale, the firms said.
“The acquisition of Bitstamp is a major step in growing our crypto business," said Johann Kerbrat, general manager of Robinhood Crypto "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.”
Bitstamp is a U.K.-based crypto exchange that was founded in 2011 and quickly became one of the largest crypto exchanges in Europe. It currently offers spot trading of over 85 cryptocurrencies as well as other crypto products including institutional lending and staking, among others. It is one of the most regulated on the market, holding more than 50 licenses and registrations globally, according to the release. It also undergoes regular audits by a global Big Four accounting firm.
Robinhood started offering crypto trading to clients in the European Union in December.
“Bringing Bitstamp's platform and expertise into Robinhood’s ecosystem will give users an enhanced trading experience with a continuing commitment to compliance, security, and customer-centricity,” said JB Graftieaux, CEO of Bitstamp, who along with the rest of the leadership team will remain in place following the sale.
The deal could ramp up the competition in the crypto exchange market as Robinhood's international expansion may take more market share from the likes of Coinbase (COIN), which is also pushing to grow outside of North America.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.