Robinhood to buy Bitstamp crypto exchange to enable institutional trading in US

Stock trading app Robinhood is expanding its presence in the cryptocurrency industry by acquiring the Bitstamp cryptocurrency exchange.

Robinhood will purchase Bitstamp in a $200 million deal, enabling the app to serve institutional clients in the United States.

The deal, subject to regulatory approval, is expected to be finalized in the first half of 2025.

The decision to buy the exchange was due to customers wanting increasingly more cryptocurrency products, Johann Kerbrat, the general manager of Robinhood Crypto, told WSJ, according to a June 6 report:

“Everything we’ve been doing in the past few years has been because our engagement from customers has been that they want more crypto products.”

Related: 63 US banks on the brink of insolvency: Why Bitcoin’s next target is $100K

Robinhood expands crypto offerings despite regulatory pressure

Robinhood has been working on expanding its cryptocurrency offerings since at least 2018 when it first started offering Bitcoin (BTC) and Ether (ETH) trading for users.

The acquisition of Bitstamp will enable Robinhood to tap into its institutional-grade offerings, including institutional lending and staking, and the Bitstamp-as-a-service white-label solution.

The deal marks a significant development for growing Robinhood’s crypto offering, according to Kerbrat, who wrote:

“Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles. 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,”

Founded in 2011, Bitstamp holds over 50 active regulatory licenses and registrations worldwide. Bitstamp will continue to function under its branding, despite the upcoming acquisition.

Related: Tether CEO warns of new wave crypto airdrop scam emails, CoinGecko potentially affected

This is a developing story, and further information will be added as it becomes available.

Also Read More: World News | Entertainment News | Celebrity News

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

FTX may be planning to purchase a stake in BlockFi: Report

Crypto exchange FTX is reportedly in talks to acquire a stake in…

What is Shibarium, and what does it mean for Shiba Inu?

The advantages of using Shibarium include higher transaction speeds, lower fees, increased…

Framework Ventures allocates half of $400M fund to Web3 gaming

Crypto-focused venture firm Framework Ventures has raised $400 million in new funding…

$8M theft forces Bittensor network shutdown

Bittensor was forced to halt its network activity on July 3 following…