Robinhood has initiated the acquisition of X1 Inc. , a financial technology company that offers smart credit cards, for $95 million in cash. The acquisition, which is expected to close in the third quarter, would enable the financial services company to give its customers access to credit.
Besides, Robinhood said it will be getting the X1 team on board. X1 co-founders Deepak Rao and Siddharth Batra will oversee the new business, the company said in a statement shared with finance poles today is Thursday). Rao will also serve as general manager of credit cards and report to Vlad Tenev, CEO and co-founder of Robinhood.
“This acquisition will bring us closer to achieving our goal of fully meeting our clients’ critical financial needs,” Tenev commented. Together with X1, Robinhood will now be able to offer our customers access to credit.
The California-based company said it is seeking to expand its product offering and strengthen its relationships with existing customers. There are no annual fees, late fees, or foreign transaction fees on X1 credit cards, according to the statement.
“In founding X1, we set out to create a different kind of credit card with an unparalleled customer experience, similar to Robinhood’s mission to make our financial markets accessible to everyone,” said Rao. “We share the same spirit and together at Robinhood we will be able to offer an enhanced credit card experience.”
Reject the user’s request
Robinhood’s acquisition of X1 comes at a time when the broker is seeing a drop in monthly active users (MAU) due to a slowdown in the stock market and interest rate hikes. The company’s MAU fell from 11.5 million to 10.6 million in May. Compared to the same period last year, the number fell further, down 28% from 14.6 million.
Moreover, Robinhood announced early this month that it will delist the cryptocurrencies commonly traded on the Cardano, Solana, and Polygon blockchains. This was after the digital assets were designated as securities by the US Securities and Exchange Commission (SEC) in lawsuits against Coinbase and Binance.
Wary of the SEC’s aggressive enforcement action, particularly against digital asset platforms, Robinhood earlier told Congress that it was reviewing its listed digital assets. The financial services platform is known for offering zero-commission stock trading services and more than a dozen cryptocurrencies.
a new exchange on TradingView; HKEX in New York; Read snippets of today’s news.
Robinhood has initiated the acquisition of X1 Inc. , a financial technology company that offers smart credit cards, for $95 million in cash. The acquisition, which is expected to close in the third quarter, would enable the financial services company to give its customers access to credit.
Besides, Robinhood said it will be getting the X1 team on board. X1 co-founders Deepak Rao and Siddharth Batra will oversee the new business, the company said in a statement shared with finance poles today is Thursday). Rao will also serve as general manager of credit cards and report to Vlad Tenev, CEO and co-founder of Robinhood.
“This acquisition will bring us closer to achieving our goal of fully meeting our clients’ critical financial needs,” Tenev commented. Together with X1, Robinhood will now be able to offer our customers access to credit.
The California-based company said it is seeking to expand its product offering and strengthen its relationships with existing customers. There are no annual fees, late fees, or foreign transaction fees on X1 credit cards, according to the release.
“In founding X1, we set out to create a different kind of credit card with an unparalleled customer experience, similar to Robinhood’s mission to make our financial markets accessible to everyone,” said Rao. “We share the same spirit and together at Robinhood we will be able to offer an enhanced credit card experience.”
Reject the user’s request
Robinhood’s acquisition of X1 comes at a time when the broker is seeing a drop in monthly active users (MAU) due to a slowdown in the stock market and interest rate hikes. The company’s MAU fell from 11.5 million to 10.6 million in May. Compared to the same period last year, the number fell further, down 28% from 14.6 million.
Moreover, Robinhood announced early this month that it will delist the cryptocurrencies commonly traded on the Cardano, Solana, and Polygon blockchains. This was after the digital assets were designated as securities by the US Securities and Exchange Commission (SEC) in lawsuits against Coinbase and Binance.
Wary of the SEC’s aggressive enforcement action, particularly against digital asset platforms, Robinhood earlier told Congress that it was reviewing its listed digital assets. The financial services platform is known for offering zero-commission stock trading services and more than a dozen cryptocurrencies.
a new exchange on TradingView; HKEX in New York; Read snippets of today’s news.