Robinhood to buy crypto exchange Bitstamp in effort to expand outside the US

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.