Key Takeaways
- The deal, which represents Robinhood’s largest acquisition to date, was announced in June last year, and was paid fully in cash.
- With the acquisition, Robinhood gains access to 50 global crypto licenses, a ready-made institutional client base expanding over 5,000.
Brokerage Fintech firm, Robinhood Markets, has completed its $200 million acquisition of Luxembourg-based crypto exchange Bitstamp, the world’s longest-running crypto exchange, the company announced Monday.
The deal, which represents Robinhood’s largest acquisition to date, was announced in June last year, and was paid fully in cash, the company said.
With the acquisition, Robinhood gains access to 50 global crypto licenses, a ready-made institutional client base expanding over 5,000, large retail customer base, which it plans to leverage to expand its crypto business.
“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,” JB Graftieaux, CEO of Bitstamp said.
The 50 crypto licenses that Bitstamp bring along will help Robinhood gains immediate access to customers across the EU, UK, and Asia without having to go through regulatory hurdles and bureaucratic red tape.
“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,” Johann Kerbrat, general manager of Robinhood Crypto, said.
Under the terms of acquisition, Robinhood has stated that Bitstamp will continue operating under its existing brand and structure, maintaining the same level of service and security
The closing deal comes amid Robinhood’s plans to acquire WonderFi, a Canadian crypto firm, for $179 million in an all-cash deal, reflecting the brokerage fintech firm’s enduring interest in the crypto space
