Robinhood, the popular stock-trading app, has officially purchased the crypto market platform Bitstamp for around $200 million, marking a huge step in the company’s ambitions to expand its global cryptocurrency footprint.
Founded in 2011, Bitstamp is one of the world’s oldest cryptocurrency exchanges, carrying a rare reputation for a bit of reliability in the growing field of digital currency over the past 15 years. With over 50 active licenses and registrations spanning Europe, the UK, the U.S., and Asia, the acquisition should bring new expertise and new customers to Robinhood’s already popular app.
“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. 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 Johann Kerbrat, General Manager of Robinhood Crypto, in a recent press release.
“By integrating Bitstamp’s offerings and infrastructure, we’re well-positioned to expand beyond the US and cater to institutional clients who demand deep liquidity and robust trade execution,” Kerbrat added.
The move also marks Robinhood’s first dive into “institutional crypto services,” tapping into Bitstamp’s unique products and services for digital currencies.
For Bitstamp, the acquisition is a sign of its longevity and impact in the often volatile crypto market.
“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,” said JB Graftieaux, CEO of Bitstamp.
Both companies said that the transition would not disrupt any current customer services.
The acquisition comes amid heightened regulatory scrutiny of digital assets, especially cryptocurrencies. Leaders across the U.S. and Europe are calling for tighter oversight of crypto exchanges, as previously covered by The Dallas Express.
Robinhood’s move to acquire the globally licensed and regulated exchange company for $200 million could be a strategic pivot to navigate the always-changing digital currency landscape while capturing new customers.
Yet, this isn’t the first big corporate impact on crypto this week.
GameStop just announced it purchased over $500 million worth of Bitcoin, as previously covered by DX. The move follows GameStop’s earlier decision to include Bitcoin in its financial reserves and its March announcement of a $1.3 billion convertible bond sale intended to fund general business needs, crypto included.
It seems like most big companies in America may be looking forward to, let alone buying into, the future of cryptocurrencies.