This transfer will enable Robinhood to compete extra aggressively within the crypto change market.
Robinhood, the favored inventory and crypto buying and selling platform, introduced it has entered an settlement to amass Bitstamp, the veteran cryptocurrency change, for $200 million in money.
Introduced on June 6, the businesses anticipate to finalize the deal through the first half of 2025. Robinhood famous that proudly owning Bitstamp will develop its attain past the U.S. crypto market, with Bitstamp additionally boasting a big buyer base in Europe, the UK, and Asia.
“The acquisition of Bitstamp is a significant step in rising our crypto enterprise,” mentioned Johann Kerbrat, the final supervisor of Robinhood Crypto. “By means of this strategic mixture, we’re higher positioned to develop our footprint outdoors of the U.S. and welcome institutional prospects to Robinhood.”
Based on Robinhood CEO, Vlad Tenev, the corporate’s acquisition of Bitstamp will develop its crypto choices to incorporate a spot change, institutional lending, and expanded staking providers.
At the moment, Robinhood acts as an middleman that sells orders to market makers, slightly than executing them immediately as a standard spot change. Robinhood hosted $36 billion in notional crypto buying and selling quantity throughout Q1 2024, equating to a day by day common of $400 million.
Robinhood started providing crypto buying and selling providers to European Union purchasers final December. The corporate additionally provides a non-custodial pockets to U.S. customers and SOL staking to European prospects.
Bitstamp, established within the U.Okay. in 2011, has persistently ranked among the many prime centralized exchanges by quantity over the previous decade. Bitstamp at the moment ranks twentieth by 24-hour quantity with $238 million, in accordance with CoinGecko.
JB Graftieaux, Bitstamp’s CEO, famous that he and the remainder of the change’s management group will retain their positions post-acquisition.
The acquisition is topic to regulatory approvals and normal closing circumstances. Barclays Capital Inc. served because the unique monetary advisor to Robinhood, whereas Galaxy Digital Companions LLC was the monetary advisor to Bitstamp.
