Key Points
- Robinhood trading platform will buy Bitstamp UK-based crypto exchange.
- The deal involves $200 million, according to new reports from The Wall Street Journal.
According to the latest reports coming from The Wall Street Journal, Robinhood is set to buy Bitstamp. The publication noted Robinhood is diving deeper into crypto with this new move.
The trading platform is expanding its crypto presence at a global level, a move that will attract even more clients via new product offerings, according to the latest announcement coming from the company.
The $200 million deal is reportedly expected to close in H1 2025. Barclays Capital and Galaxy Digital advised Robinhood and Bitstamp on the sale, according to the firms.
As CNBC also noted, Bitstamp will power the growth of Robinhood Crypto and is set to become its first institutional business.
According to the same notes, Bitstamp's core spot exchange which is popular in Europe and Asia has more than 85 tradable assets and includes products like lending and staking.
Accelerating Robinhood's global expansion
Johann Kerbrat, Vice President and General Manager of Robinhood Crypto told Reuters, cited by CNBC that they are in the early days in the EU and they are excited to keep expanding there and beyond.
The acquisition of Bitstamp will accelerate the global expansion.
This new deal comes at a time when Robinhood's crypto business is seeing rapid growth but is also facing regulatory issues in the US.
According to Kerbrat, the company plans to continue communicating with regulators as it moves forward.
Back in May, Robinhood disclosed that it received a Wells notice from the US SEC which signaled a potential upcoming enforcement action.
A Wells notice is a formal notification issued by the SEC that informs a company or individual about the intentions of the regulator staff to recommend enforcement actions against them.
This notice offers the recipient the opportunity to provide a written explanation or an argument about the potential reasons for which such action should not be taken.
The SEC said that crypto should be considered securities and subject to its registration rules which led to crypto firms accusing the regulator of overreach. Back in April, Uniswap also received a Wells notice from the SEC.
In March, Robinhood launched its crypto wallet on Google Play for Android users worldwide.
