Robinhood (NASDAQ: HOOD), a modern spin on a retail brokerage, has announced the pending acquisition of Bitstamp, a crypto exchange that operates across the EU, US, UK and Asia. Bitstamp is a top 20 crypto exchange, currently ranked 16th in the world by Coinmarketcap. The digital asset platform serves over 4 million customers worldwide in over 100 countries.
Bitstamp is said to have been approved by 50 authorities and registrations globally. It is said to be the first crypto exchange to receive a Payment Institution License in the EU, holds a BitLicense in New York.
In a blog post, Robinhood said it was paying $200 million in cash subject to standard approvals and closing conditions. The acquisition is expected to close in early 2025. Barclays Capital and Galaxy Digital Partners advised the two parties. Bitstamp management is expected to remain with the combined entity.
JB Graftieaux, CEO of Bitstamp, described his operation as one of the most trusted and transparent crypto exchanges in the world.
“Bringing Bitstamp’s platform and expertise into Robinhood’s ecosystem will give users an enhanced trading experience with a continuing commitment to compliance, security, and customer-centricity.”
The acquisition of Bitstamp is being described as a major step in boosting Robinhood’s crypto offerings. Robinhood already generates significant trading activity in crypto from its users.
By seamlessly coupling customer experience with safety across geographies, the Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors,” said Johann Kerbrat, General Manager of Robinhood Crypto. “Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood.”
Robinhood reflected on Bitstamp as a trusted platform for institutional clients. Robinhood said Bitstamp’s other institutional offerings, like white label solution Bitstamp-as-a-service, institutional lending, and staking, would boost its current digital asset business.
Bitstamp’s spot exchange currently offers more than 85 tradable assets alongside staking and lending.
Founded in 2011, the holding company is based in Brussels. The EU has approved bespoke crypto rules under MiCA and thus should provide solid footing in the continent for Robinhood.