Robinhood, the popular commission-free stock trading platform, announced today that it has agreed to acquire Bitstamp, a global cryptocurrency exchange, for $200 million in cash. This move signifies Robinhood’s continued expansion into the cryptocurrency market and its first foray into the institutional investment space.
Back in April, we had also reported about ComplyAdvantage which strengthened its financial crime intelligence by acquiring another startup called Golden.
Founded in 2011, Bitstamp is a well-established cryptocurrency exchange with a global presence. The company boasts offices in Luxembourg, the UK, Slovenia, Singapore, and the US, and holds over 50 active licences and registrations worldwide. This extensive reach is expected to significantly accelerate Robinhood’s crypto business expansion beyond the United States.
How will the acquisition help Robinhood
The acquisition will bring Bitstamp’s customer base, spanning retail and institutional investors across the EU, UK, US, and Asia, under the Robinhood umbrella. Notably, this deal marks Robinhood’s entry into the institutional crypto investment space.
Bitstamp is recognized for its reliable trade execution, deep order books, and industry-leading API connectivity, features highly valued by institutional investors. Additionally, Bitstamp offers white-label solutions, institutional lending, and staking services, providing Robinhood with established infrastructure and industry-leading products to cater to this new segment.
Johann Kerbrat, General Manager of Robinhood Crypto, highlighted the strategic value of the acquisition: “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.” Kerbrat went on to emphasise the user benefits: “Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood.”
JB Graftieaux, CEO of Bitstamp, echoed the sentiment of a strengthened platform: “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.”
The acquisition is expected to close in the first half of 2025, subject to customary closing conditions, including regulatory approvals. Both Robinhood and Bitstamp have assured their customers that service levels, security, and reliability will remain consistent throughout the process.
What we think a out the news
This acquisition marks a significant step for Robinhood in its quest to become a major player in the global cryptocurrency market. By acquiring Bitstamp’s established brand, global reach, and institutional offerings, Robinhood positions itself to cater to a wider range of investors while expanding its footprint beyond the US market.
The success of this integration, however, will depend on maintaining a seamless user experience, navigating regulatory hurdles, and ensuring continued trust from both retail and institutional investors.
