Robinhood Ventures Into Crypto With Bitstamp Purchase

Robinhood Markets, Inc., an American company that offers financial services, has made a deal to buy Bitstamp, a global cryptocurrency exchange.

Robinhood is buying the global exchange for $200 million to strengthen its presence outside the US and add a trusted, well-known business to its company. This purchase is also meant to help Robinhood Crypto grow faster around the world, even though the SEC has warned them about their digital-assets business.

Robinhood Plans To Offer More Crypto Products In Different Countries

Bitstamp was launched in 2011 and now has offices in the US, Singapore, Slovenia, the UK, and Luxembourg.

The latest acquisition deal will help Robinhood expand its crypto business globally. The deal is expected to close in the first half of 2025 after meeting the usual closing rules and getting regulatory approvals. This news comes after Robinhood announced it would start crypto trading in the European Union (EU).

Bitstamp is important because it is consistently trusted by its customers for deep order books, reliable trade execution, and API connectivity.

Robinhood stated that buying Bitstamp will let it offer more crypto products in other countries. In the US, the firm will concentrate on letting institutional clients trade crypto for other cryptos.

Bitstamp is the oldest crypto exchange in the world and lets people exchange regular money for many cryptocurrencies like Ripple, Litecoin, Ethereum, and Bitcoin. Robinhood already gives out Bitstamp’s services loans for institutions and staking. With this purchase, Robinhood can enter a larger crypto world with more infrastructure and great products.

Robinhood Aims To Enhance User Trading Experiences

JB Graftieaux, Chief Executive Officer of Bitstamp, stated that because Bitstamp is the oldest crypto exchange, it’s famous all over the world for being trustworthy and clear. He also added that combining Bitstamp’s platform and knowledge with Robinhood’s system will make trading better for users while still making sure to follow rules, stay safe, and put customers first.

In the same way, Bitstamp’s main exchange has more than 85 assets for trading. These will improve Robinhood’s Crypto trading service. Robinhood started letting people trade cryptocurrencies in 2018 and has made $126 million in revenue from crypto. A report stated that Robinhood’s company shares increased by 5.4% in early trading, reaching its highest point since December 2021.

Johann Kerbrat, General Manager of Robinhood Crypto, stated that the company plans to collaborate with Bitstamp and encourage a culture of innovation and learning. The acquisition of Bitstamp is a significant move for growing the firm’s crypto business.

Kerbrat points out that Bitstamp’s globally trusted and long-standing exchange has stayed strong through different market situations. By combining a good customer experience with safety across different places, the Bitstamp team has built one of the best reputations among big investors and regular people in the crypto industry.