An agreement has been reached for American financial services business Robinhood Markets, Inc. (Robinhood) to purchase Bitstamp, a worldwide bitcoin exchange.

The purpose of strategically purchasing the worldwide exchange for US$200 million is to improve Robinhood's standing outside of the US and attract a reliable and respectable institutional company to the platform. In addition, it seeks to expedite the global growth of Robinhood Crypto in spite of the Securities and Exchange Commission's (SEC) cautions on its digital asset business.

Since its founding in 2011, Bitstamp has maintained offices in Luxembourg, the US, Singapore, Slovenia, and the United Kingdom (UK). It is anticipated that the transaction would conclude in the first half of 2025, pending regulatory approval and typical closing conditions.

The announcement of the start of cryptocurrency trading in the European Union (EU) by Robinhood precedes the news.

Growing its Crypto Presence: Robinhood

This kind of deal will allow Robinhood to expand its cryptocurrency operations globally. Because its customers regularly rely on Bitstamp for dependable trade execution, extensive order books, and API connection, Bitstamp is a noteworthy endeavor.

According to Robinhood, the purchase would allow it to increase the number of cryptocurrency goods it offers in foreign countries. The company's primary goal in the US will be to facilitate institutional clients' trading of cryptocurrency for cryptocurrency.

The oldest cryptocurrency exchange in the world, Bitstamp enables trading between fiat money and a variety of cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, and Ripple. In addition to larger infrastructure and products that lead the industry, Robinhood will be able to join an expanding crypto field with active and established connections, having already provided Bitstamp-as-a-service, institutional lending, and staking.

According to JB Graftieaux, CEO of Bitstamp, "Bitstamp is recognized as one of the most transparent and reliable cryptocurrency platforms globally, having been in operation for the longest period of time." "By integrating Bitstamp's platform and knowledge into Robinhood's ecosystem, users will benefit from an improved trading experience that is centered around compliance, security, and customer needs."

View the following video of FinTech Magazine interviewing JB Graftieaux at Money 20/20 Europe in 2023:

A dedication to international innovation
Similarly, Robinhood's cryptocurrency service will benefit from Bitstamp's primary spot market, which has over 85 traded assets. 2018 saw the launch of Robinhood's cryptocurrency trading service, which today generates US$126 million in revenue.

The Financial Times reports that in early trade, shares of the Robinhood firm increased 5.4%, reaching their highest level since December 2021.

KEY FACTS ABOUT ROBINHOOD: THE INVESTOR

• 24 million clients who are financed

• US$123 billion in assets under guard

• Net Deposit Growth Rate (35% LTM)

According to Johann Kerbrat, General Manager of Robinhood Crypto, the company hopes to collaborate with Bitstamp and promote an innovative and knowledgeable culture.

The purchase of Bitstamp represents a significant advancement for our cryptocurrency company. He emphasizes that Bitstamp's well-known and dependable worldwide exchange has proven resilient in the face of market fluctuations. One of the best reputations among institutional and retail cryptocurrency investors has been built by the Bitstamp team's ability to effortlessly combine safety and user experience across geographical boundaries.

"We are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood through this strategic combination," he continues.