Robinhood has formally closed its $200 million acquisition of Bitstamp, bringing one of many world’s longest-running cryptocurrency exchanges into its fold and signaling a strategic shift past retail buying and selling and into the world of establishments.
The all-cash deal, first introduced final 12 months, offers Robinhood an instantaneous worldwide footprint — together with greater than 50 lively crypto licenses throughout Europe, the UK, and Asia — in addition to a longtime institutional shopper base, one thing the retail buying and selling app has lengthy lacked.
For Robinhood, the deal marks a transfer into deeper waters: institutional crypto flows, lending and staking infrastructure, and white-label “crypto-as-a-service,” merchandise constructed for hedge funds, fintechs, and registered funding advisors — all of which require strong programs for custody, worth discovery, and settlement.
“I would not name it essentially a pivot,” Robinhood Crypto Common Supervisor Johann Kerbrat advised CNBC. “For us, it is combining the strengths of the 2 companies. We’re one of many largest retail marketplaces within the U.S. … They’ve merchandise that we do not have, like order books, crypto as a service, superior API and lending and staking and because of that, we will get into this area, not ranging from scratch.”
Robinhood, which launched crypto buying and selling in 2018 and helped drive the meme-coin mania of 2021, has in current months labored to rebrand itself as a severe participant within the subsequent part of digital asset finance — one which’s more and more outlined by regulation, institutional capital, and cross-border competitors.
“Now that we’re beginning to see the regulatory readability coming from Congress and the administration, increasingly establishments are going to need to get into crypto,” added Kerbrat.
The Bitstamp deal offers it a head begin.
Based in 2011, Bitstamp is understood for its deep liquidity, compliant repute, and minimalist strategy. Whereas not flashy, Bitstamp has weathered a number of market cycles and constructed longstanding relationships with institutional companions throughout Europe and Asia — one thing Robinhood plans to leverage.
Earlier this month, Robinhood additionally acquired Canadian crypto agency WonderFi to faucet into Canada’s established consumer base.
“Robinhood is a market. We do not match orders. And with Bitstamp, we can have a sturdy product providing that can actually permit us to construct extra on the lively dealer and superior dealer facet of issues.,” Kerbrat mentioned.
“That is going to be a giant step for us and actually diversify our crypto enterprise, not simply from retail within the U.S. — to a worldwide providing,” he mentioned.
It additionally offers Robinhood a regulatory on-ramp to Europe, the place crypto guidelines are clearer in comparison with the fragmented strategy within the U.S.
The corporate confirmed it would keep Bitstamp’s present interfaces and operations for now, whereas exploring deeper integration over time. Bitstamp is already getting used behind the scenes for good order routing via Robinhood’s institutional internet platform, Robinhood Ledger.
“The circulation we’re sending to Bitstamp will make Bitstamp extra energetic — and entice extra establishments,” Kerbrat mentioned.
The acquisition closes at a crucial second for Robinhood.
The fintech participant has continued to develop aggressively, together with itemizing new tokens, launching staking, and teasing worldwide product rollouts. Bitstamp’s regulatory monitor file and licensing portfolio could supply a measure of insulation as Robinhood pushes additional into new worldwide markets.
Kerbrat did not rule out the potential of different acquisitions.
“If we are able to discover a approach to speed up by at the least 18 months or two years — and we’ve quite a lot of nice purpose to imagine it is a nice acquisition — it is one thing that we’ll positively have a look at,” he mentioned.
