- Bitstamp has a strong presence in the European and Asian markets.
- This deal comes amid a challenging regulatory landscape in the US.
Robinhood announced this week that it acquired the cryptocurrency exchange Bitstamp for $200 million in a cash deal. This move expands Robinhood’s crypto portfolio and positions it to compete directly with industry heavyweights like Binance and Coinbase.
Through this acquisition, Robinhood aims to diversify its offerings beyond traditional stock trading. The acquisition of Bitstamp, a well-established crypto exchange with over 85 tradable assets and 50 global licenses, underscores Robinhood’s commitment to expanding its digital asset services.
Bitstamp was founded in 2011 and is particularly strong in European and Asian markets. Speaking about the new deal, Robinhood’s Vice President and General Manager of Crypto, Johann Kerbrat, emphasized the importance of this acquisition for the company’s global expansion plans. Kerbrat told Reuters: “We are in our early days in the EU, and we are excited to keep expanding there and beyond. The acquisition of Bitstamp will accelerate our global expansion.”
The deal comes amidst a challenging regulatory landscape in the United States. The SEC’s stance on crypto tokens as securities has created hurdles for crypto firms, including Robinhood. Despite these challenges, Robinhood’s crypto business has seen rapid growth. The Bitstamp acquisition is set to further this growth trajectory, albeit with close attention to regulatory compliance.
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Robinhood’s Strategic Expansion
The transaction, expected to close in the first half of 2025, has Barclays Capital advising Robinhood and Galaxy Digital representing Bitstamp. Robinhood’s stock has already surged 69% this year, fueled by its focus on profitable growth and the rising wave of retail trading and crypto adoption. Analysts believe that the Bitstamp deal will bolster Robinhood’s market position and drive future gains.
Recently, Robinhood launched an application programming interface (API) for US traders, Cointelegraph reported. This API promises to enhance the trading experience by offering automation and real-time market interaction.
By using this API, traders can set up automated systems to execute trades based on real-time market data and predefined parameters, eliminating the need for constant manual monitoring. The company explained that the new offering enables the user to automate their trading and react swiftly to market changes.
