Buying and selling platform Robinhood has agreed to purchase U.Ok.-based crypto alternate Bitstamp for $200 million in money.
U.Ok.-based Bitstamp was based in 2011 and is without doubt one of the largest crypto exchanges in Europe.
The acquisition is hoped to permit Robinhood to develop its crypto presence globally and entice institutional clientele.
Buying and selling platform Robinhood (HOOD) has agreed to amass crypto alternate Bitstamp because it appears to develop its crypto presence globally and entice institutional purchasers by new product choices, the corporate introduced Tuesday.
The $200 million all-cash deal is predicted to shut within the first half of 2025, in accordance with the press launch. Barclays Capital and Galaxy Digital suggested Robinhood and Bitstamp on the sale, the companies stated.
“The acquisition of Bitstamp is a serious step in rising our crypto enterprise,” stated Johann Kerbrat, common supervisor of Robinhood Crypto “Bitstamp’s extremely trusted and lengthy standing world alternate has proven resilience by market cycles … By this strategic mixture, we’re higher positioned to develop our footprint outdoors of the U.S. and welcome institutional prospects to Robinhood.”
Bitstamp is a U.Ok.-based crypto alternate that was based in 2011 and shortly turned one of many largest crypto exchanges in Europe. It at present gives spot buying and selling of over 85 cryptocurrencies in addition to different crypto merchandise together with institutional lending and staking, amongst others. It is without doubt one of the most regulated available on the market, holding greater than 50 licenses and registrations globally, in accordance with the discharge. It additionally undergoes common audits by a world Massive 4 accounting agency.
Robinhood began providing crypto buying and selling to purchasers within the European Union in December.
“Bringing Bitstamp’s platform and experience into Robinhood’s ecosystem will give customers an enhanced buying and selling expertise with a unbroken dedication to compliance, safety, and customer-centricity,” stated JB Graftieaux, CEO of Bitstamp, who together with the remainder of the management staff will stay in place following the sale.
The deal might ramp up the competitors within the crypto alternate market as Robinhood’s worldwide enlargement could take extra market share from the likes of Coinbase (COIN), which can also be pushing to develop outdoors of North America.