Robinhood announced a $200 million acquisition of Bitstamp despite facing possible legal hurdles from the U.S. Securities and Exchange Commission (SEC) in a bold stride into the cryptocurrency market. The deal is set to cement Robinhood’s position in the international crypto and stock trading arenas.
We’re accelerating Robinhood Crypto’s worldwide expansion. Robinhood has officially entered into an agreement to acquire @Bitstamp, a global cryptocurrency exchange with customers across the EU, UK, US and Asia.
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More details: https://t.co/wk3x02z0rU pic.twitter.com/aadKzhCxlx
— Robinhood (@RobinhoodApp) June 6, 2024
Strategic Growth Amid Regulatory Hurdles
Originally known as a platform for beginner investors, Robinhood is now expanding its services. The Acquisition, finalized in early 2025, will enable Robinhood to serve institutional crypto clients and Broaden its global footprint.
Founded in 2011, Bitstamp is a well-established cryptocurrency exchange with over 50 global licenses. This enhances Robinhood’s regulatory profile significantly.
Last month, Robinhood received a Wells notice from the SEC, suggesting potential legal action for securities law violations. Despite this, Robinhood is continuing with its expansion efforts. The notice relates to the company’s digital assets business but allows Robinhood to respond before any official action is taken.
Crypto Services Driven by Customer Demand
The acquisition aligns with Robinhood’s strategy to deepen its crypto trading capabilities. Bitstamp’s robust regulatory credentials and international reach make it a valuable addition. Robinhood’s cryptocurrency trading revenue jumped to $126 million in the first quarter. This is a notable rise from $38 million in the same period last year.
The company’s cryptocurrency assets under custody have also doubled to $26 billion, and trading volumes have increased threefold from April last year.
Johann Kerbrat, general manager of Robinhood Crypto, stated that the acquisition was driven by customer demand for more sophisticated crypto products. “This acquisition will allow us to offer a more advanced suite of crypto services internationally,” Kerbrat noted.
Future Outlook and Commitment to Compliance
Despite the potential regulatory challenges, Robinhood is optimistic about its position in the U.S. market and its ongoing discussions with regulators. The firm plans to focus on crypto trading for institutional clients in the U.S. while expanding its services internationally.
Bitstamp CEO JB Graftieaux emphasized the commitment to compliance and security that the acquisition will reinforce. “As the world’s longest-running cryptocurrency exchange, Bitstamp’s trusted and transparent platform will enhance Robinhood’s offerings, ensuring a superior trading experience for our users,” said Graftieaux.
Integrating Bitstamp’s expertise and offerings, such as staking and lending products, into Robinhood’s portfolio, is expected to boost its capabilities in the crypto market significantly. As the landscape for cryptocurrency investment continues to evolve, Robinhood’s strategic expansion is set to play a pivotal role in shaping its trajectory, ensuring it remains competitive in the burgeoning crypto economy.
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