Markets
Robinhood agrees to acquire cryptocurrency exchange Bitstamp in bid for global expansion
Stockbroker and online trading Robinhood Markets Inc. said today which has agreed to acquire Bitstamp Ltd., a cryptocurrency exchange with global reach, in an effort to deepen the company’s cryptocurrency offerings and expand its customer base outside the United States.
Under the agreement, Bitstamp will be sold to Robinhood in a $200 million cash deal, subject to customary closing conditions and regulatory oversight approvals, and the closing is expected to occur during the first half of 2025. Galaxy Digital Inc. and Barclays Capital Partners served as advisors on the transaction.
Bitstamp was founded in 2011 and operates a global cryptocurrency exchange with offices in the US, UK, Luxembourg, Slovenia and Singapore. The company holds more than 50 active licenses worldwide and would expand Robinhood’s existing cryptocurrency trading capabilities.
Robinhood added U.S. cryptocurrency trading to its platform during a slow rollout throughout 2018, starting with a small number of cryptocurrencies and then expanding to more than 30 crypto assets, including bitcoin and Ethereum. Bitstamp’s institutional and retail trading platform includes more than 85 crypto assets and offers products such as staking and lending.
“Bitstamp’s long-standing and highly trusted global exchange has demonstrated resilience through market cycles,” said Johann Kerbrat, managing director of Robinhood Crypto. “Through this strategic combination, we are better positioned to expand our presence outside the United States and welcome institutional clients to Robinhood.”
This news comes one month after Robinhood received a “well notice” of enforcement actions by the United States Securities and Exchange Commission regarding crypto tokens traded on its platform. The notice itself does not constitute an action in itself, nor does it mean that the company is involved in any wrongdoing, but it does inform the company that the SEC is planning to take enforcement action.
“We firmly believe that the assets listed on our platform are not securities, and we look forward to working with the SEC to clarify how weak any case against Robinhood Crypto would be,” Dan Gallagher, head of legal, compliance and corporate affairs at Robinhood, said at the time.
The SEC has stepped up its efforts against the cryptocurrency industry, issuing statements that companies dealing in cryptocurrencies must comply with securities laws in order to protect investors in thriving cryptocurrency markets in the same way as mature stock markets. This has led the SEC to file charges against several major cryptocurrency companies, including Coinbase Inc.the largest domestic cryptocurrency exchange, as well Bittrex Inc., Genesis Global Capital LLC, Gemini Trust Co. LLC and Nexo Inc. to name a few.
Image: Pixabay
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