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Robinhood Expands Cryptocurrency Offerings with Bitstamp Deal
Robinhood Markets is set to acquire the cryptocurrency exchange Bitstamp for 200 million dollars.
“The acquisition of a global exchange will significantly accelerate Robinhood Crypto’s expansion around the world,” the company said in a Press release Thursday (June 6). “Bitstamp holds over 50 active licenses and registrations globally and will bring customers across the EU, UK, US and Asia to Robinhood.”
According to the release, the acquisition of Luxembourg-based Bitstamp marks Robinhood’s first institutional business, giving it access to Bitstamp’s other institutional offerings such as the Bitstamp-as-a-service white label solution, institutional lending and staking.
“The acquisition of Bitstamp is an important step in the growth of our cryptocurrency business. Bitstamp’s highly trusted and long-standing global exchange has demonstrated resilience through market cycles,” he said Johann Kerbrat, CEO of Robinhood Crypto. “By seamlessly blending customer experience with security across all geographies, the Bitstamp team has built one of the strongest reputations among retail and institutional crypto investors.”
Bitstamp CEO added J.B. Graftieaux: “As the world’s longest-running cryptocurrency exchange, Bitstamp is known as one of the most trusted and transparent crypto platforms in the world. Bringing Bitstamp’s platform and expertise to the Robinhood ecosystem will provide users with an enhanced trading experience with an ongoing commitment to compliance, security and customer centricity.”
Last month, Robinhood reported earnings like this exceeded expectations, a surge in profits attributed in part to the company’s thriving cryptocurrency business. This business was in turn boosted by the approval of the first bitcoin exchange-traded funds in the United States earlier this year.
At the same time, Robinhood faces challenges, like the recent one Wells Notice by the Securities and Exchange Commission (SEC), a sign of impending enforcement action against the company, raising concerns about the future of Robinhood’s cryptocurrency trading arm.
The company said it firmly believes that cryptocurrencies listed on its platform are not securities and that it would oppose the SEC’s enforcement efforts.
“After years of good faith attempts to work with the SEC to obtain regulatory clarity, including our notorious ‘go in and register’ effort, we are disappointed that the agency has decided to issue a Wells Alert regarding our cryptocurrency business in the United States.” Dan Gallagherthe company’s head of legal, compliance and corporate affairs said in a blog post.