Robinhood Markets, Inc. is set to acquire Global cryptocurrency exchange Bitstamp is set to expand its reach outside the United States. The acquisition, which is expected to close in 2025, will become Robinhood's first institutional purchase.
Robinhood is eyeing global expansion
Robinhood trading platform Announce It has agreed to purchase Bitstamp to increase its global presence. The acquisition will bring Bitstamp's retail and institutional customers to Robinhood.
The deal is expected to raise approximately $200 million in cash and close in the first half of 2025, although it could be subject to customary pricing provisions and regulatory approvals.
Founded in 2011, Bitstamp's global presence includes offices in Luxembourg, the United Kingdom, Slovenia, Singapore, and the United States. The exchange also has over 50 active licenses and registrations worldwide and offers over 85 tradable assets.
According to the press release, Bitstamp's institutional offerings, including institutional lending and Bitstamp-as-a-service, will provide the trading platform with active, established relationships and the infrastructure to enter this space.
A major step for Robinhood's cryptocurrency offering
The trading platform hopes to accelerate its expansion around the world and increase its cryptocurrency offerings through the acquisition. Johan Kerbrat, Managing Director of Crypto, believes that the deal represents an important step for the company:
The acquisition of Bitstamp is a major step in growing our cryptocurrency business. The highly reliable and long-standing global exchange Bitstamp has shown resilience through market cycles. By seamlessly combining customer experience and safety across geographies, the Bitstamp team has created one of the strongest reputations across retail and institutional cryptocurrency investors. Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional clients to Robinhood.
Likewise, JP Graftio, CEO of Bitstamp, expressed his excitement at the combination of the two companies. He said:
As the world's longest running cryptocurrency exchange, Bitstamp is known as one of the most trusted and transparent cryptocurrency platforms worldwide. Bringing Bitstamp's platform and expertise to the Robinhood ecosystem will give users an enhanced trading experience with a continued commitment to compliance, security, and customer focus.
Total crypto market capitalization is at $2.57 trillion in the three-day chart. Source: TOTAL on TradingView
Featured image from newsroom.aboutrobinhood.com, chart from TradingView.com