The high-value crypto market continues to gain attention from high-profile financial actors, with Robinhood the latest to make a move in the sector.
The US financial service has announced its acquisition of Bitstamp, a global cryptocurrency exchange with offices in the UK, US, Slovenia, Singapore and Luxembourg and over 50 international licences.
The American exchange trading platform is eyeing up a significant expansion of its operations in global cryptocurrency via the acquisition. The firm is expecting engagement with crypto customers across the EU, UK, US and Asia.
Robinhood anticipates the final deal consideration to be around $200m in cash, and for the acquisition to be completed in the first half of 2025 – subject to customary closing conditions, including regulatory approvals.
JB Graftieaux, CEO of Bitstamp, said: “As the world’s longest running cryptocurrency exchange, Bitstamp is known as one of the most-trusted and transparent crypto platforms worldwide.
“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.”
Robinhood will inherit Bitsamp’s clients and its core spot exchange, including 85 tradable assets to enhance its crypto offering. Alongside the exchange, the acquisition will include Bitsamp’s white label solution, Bitstamp-as-a-service, which enables institutional lending and staking.
Though significantly expanding Robinhood’s crypto activity, the company has been active in the sector for some time via its Robinhood Crypto platform. However, the timing of the acquisition does come at an important time in crypto’s history, particularly in the US.
The market is experiencing a period of high valuations globally, particularly Bitcoin. This has been driven by the Bitcoin halving event last April, but also by the Securities and Exchange Commission (SEC) approval of Bitcoin ETFs, later doing the same for ETH. This has opened up new avenues for investment in cryptocurrency.
In addition to expanding its position in crypto, the acquisition also marks an expansion of Robinhood’s worldwide presence through Bitstamp’s aforementioned licences. This builds on Robinhood’s expansion efforts in other areas, such as its UK launch last year.
Johann Kerbrat, General Manager of Robinhood Crypto, said: “The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long standing global exchange has shown resilience through market cycles.
“By seamlessly coupling customer experience with safety across geographies, the Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors.
“Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood.”