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07/06/24
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Robinhood Reportedly Trying to Purchase Bitstamp
Robinhood is reportedly taking steps to expand its presence within the crypto space. The stock trading firm wants to acquire the Bitstamp crypto exchange in a $200 million deal, to provide services to U.S.-based institutional clients.
However, the deal requires approval from regulators but should be finalized within the first six months of next year. Robinhood Crypto general manager Johann Kerbrat said the decision to purchase Bitstamp was based on customers’ increasing demand for crypto products, according to a report by the Wall Street Journal.
“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,” said Kerbrat. Similarly, in the words of Robinhood co-founder and CEO Vlad Tenev, cryptocurrency will “fundamentally reorganize the financial system,” prompting the firm’s decision to buy Bitstamp.
“Soon we’ll combine forces with Bitstamp’s global footprint, core spot exchange and industry-leading products like crypto-as-a-service, institutional lending, and staking,” said Tenev via X.
The firm’s attempt to expand its crypto offerings started about six years ago; it was the first time of providing BTC and ETH trading for users. Acquiring Bitstamp means Robinhood can tap into its offerings meant for institutions, including institutional lending and staking, as well as the Bitstamp-as-a-service white-label solution.
“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,” said Kerbrat. The firm currently has more than fifty active regulatory licenses and registrations globally.
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