Robinhood confirms plans to acquire Bitstamp

Robinhood, the popular cryptocurrency trading app, has confirmed plans to acquire leading European exchange Bitstamp for approximately $200 million.
Robinhood confirmed the development in a press release today, highlighting that it had reached an agreement with Bitstamp.
Transaction Details
Under the agreement, Robinhood will pay nearly $200 million in cash for the acquisition. The transaction is expected to be completed in the first half of 2025. It is worth noting that this forecast is subject to approval by relevant regulatory authorities.
The acquisition will allow Robinhood to compete with top cryptocurrency exchanges, including Coinbase and Binance. Founded in 2011, Bitstamp currently has offices in Luxembourg, Slovenia, the United Kingdom, the United States and Singapore.
In addition to having physical offices in these regions, Bitstamp has more than 50 active licenses allowing it to operate around the world.
According to the announcement, the acquisition of Bitstamp will accelerate Robinhood’s global expansion plans into other markets, particularly in Europe and Asia.
Robinhood to serve institutional clients
Through the deal, Robinhood will offer its products to institutional clients. The press release notes that institutional clients rely on Bitstamp for efficient trade execution, top-tier API connectivity, and extensive order books.
Robinhood aims to provide strong relationships and cutting-edge products to institutional clients through Bitstamp’s various institutional services, including institutional lending and locking.
Reacting to the development, Vlad Tenev, CEO and founder of Robinhood, stressed the company’s belief in the transformational potential of cryptocurrencies in reshaping the global financial system.
According to Tenev, the agreement to acquire Bitstamp will accelerate Robinhood’s vision of integrating cryptocurrencies into mainstream finance.
“Soon, we will be partnering with Bitstamp’s global footprint, core spot exchange, and industry-leading products such as crypto services, institutional lending, and locking,” Tenev added.
Robinhood faces regulatory scrutiny in the U.S.
The development comes at a time when Robinhood faces regulatory scrutiny in the United States. Last month, Robinhood disclosed that it had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), indicating that the regulator intends to take enforcement action against the company.
The SEC’s action against Robinhood came as a surprise to many, given the company’s conservative approach to listing tokens. While several U.S. exchanges support multiple crypto assets, Robinhood lists only 15 coins, including SHIB and BTC.
Interestingly, the acquisition will give Robinhood access to more than 80 tradable assets and other products.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are advised to conduct in-depth research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.