Robinhood, the popular trading platform known for its commission-free stock trading, has announced its decision to acquire Bitstamp, a leading crypto exchange, for approximately $200 million. This strategic move marks Robinhood’s most significant push into the digital assets industry, aiming to expand its global footprint and attract institutional clients.
The deal, expected to close in the first half of 2025, highlights Robinhood’s ambition to grow its crypto business and become a formidable competitor to major crypto trading firms like Binance and Coinbase. Barclays Capital and Galaxy Digital advised both companies on the transaction.
Johann Kerbrat, General Manager of Robinhood Crypto, emphasized the importance of the acquisition, stating, “The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles. Through this strategic combination, we are better positioned to expand our footprint outside of the U.S. and welcome institutional customers to Robinhood.”
Bitstamp, founded in 2011 and based in the UK, is one of the largest and most regulated crypto exchanges in Europe, offering spot trading of over 85 cryptocurrencies along with other crypto products such as institutional lending and staking. It holds more than 50 licenses and registrations globally and undergoes regular audits by a global Big Four accounting firm.
JB Graftieaux, CEO of Bitstamp, expressed enthusiasm about the merger, saying, “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.”
Robinhood’s expansion into the global crypto market follows its recent profitability surge driven by high crypto trading volumes. The company reported a profit of $157 million for the first quarter, exceeding analyst expectations. This acquisition is seen as a move to capitalize on the growing interest in digital currencies and to diversify beyond traditional equities and options brokerage.
The competition in the crypto exchange market is expected to intensify with Robinhood’s international expansion. The acquisition could potentially take market share from established players like Coinbase, which is also actively seeking growth opportunities outside North America.
This deal is part of a broader trend where traditional financial companies are increasingly venturing into the crypto space. Columbia Business School professor Omid Malekan noted, “Companies like Robinhood see there is probably a lot more growth in all things related to crypto than there is just remaining a traditional equities and options brokerage.”
The announcement comes at a time when the Securities and Exchange Commission has approved spot bitcoin exchange-traded funds (ETFs), prompting industry giants such as BlackRock, Fidelity Investments, and Franklin Templeton to introduce crypto ETFs. These products offer investors exposure to bitcoin without the need to directly own the cryptocurrency.
Christian Catalini, founder of MIT Cryptoeconomics Lab, commented on the significance of the deal, saying, “This move is part of a broader trend of mainstream fintech players becoming crypto players, and the other way around. It marks a new chapter for crypto.”
As Robinhood integrates Bitstamp’s platform and expertise, the company is poised to offer a more robust trading experience while maintaining its commitment to compliance and security. This acquisition underscores Robinhood’s intent to play a significant role in the evolving landscape of digital finance.
