Trading platform Robinhood is expanding its footing in the crypto industry by acquiring U.K.-based crypto exchange Bitstamp in a $200 million cash deal. With the new acquisition, Robinhood seeks to expand into non-US markets and attract institutional customers through new product offerings.
Robinhood’s deal comes despite the company receiving a Wells Notice from the U.S. Securities and Exchange Commission.
Bitstamp To Be Sold To Robinhood In $200M Deal
Robinhood has announced the decision to acquire Bitstamp exchange in a deal intended at better positioning the zero-fee trading platform for expansion outside the U.S. The $200 million all-cash deal is expected to close in the first half of 2025, per the Thursday press release, subject to regulatory approval.
Established in 2011, Bitstamp is the oldest running digital asset exchange with at least 50 active licenses and registrations worldwide. The acquisition will bring Bitstamp’s retail customers to the EU, UK, and the U.S. under the Robinhood umbrella, along with its institutional-grade offerings and core spot exchange. Bitstamp’s existing team will also team up with Robinhood as part of the acquisition deal.
According to Robinhood Crypto general manager Johann Kerbrat, customers wanted more crypto products, which motivated the decision to acquire Bitstamp. Robinhood will become a full-fledged financial services provider and rival industry giants like Binance and Coinbase amid the platform’s international expansion plans.
Major Step Forobinhood’s Crypto Offering Amid Regulatory Pressure
Beyond its digital asset exchange services with more than 85 tradable cryptocurrencies, Bitstamp also offers customers staking, lending products, and the Bitstamp-as-a-service white-label solution, which Robinhood believes will enhance its crypto offering.
“The acquisition of Bitstamp is a major step in growing our crypto business,” Kerbrat posited. “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 CEO JB Graftieaux added that “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.”
On May 4, Robinhood Crypto became the latest company to be slapped with a Wells Notice from the Securities and Exchange Commission — a preliminary warning from the regulator about potential legal action. CEO Vlad Tenev criticized the move, accusing the regulator of a “continued attack on crypto” that hurts American businesses and consumers.
The Wells notice does not necessarily mean that the SEC will lodge a lawsuit against Robinhood. The trading platform has revealed it will continue cooperating with the top financial watchdog to avoid any possible violations.
That being said, Robinhood is just one of the many industry players to receive a Wells notice this year. Others, including Ethereum development company Consensys and DeFi exchange Uniswap, are also in the same boat. Consensys, however, decided to preemptively sue the SEC after being sent the notice.
