Robinhood, the stock trading app, is set to acquire the Bitstamp crypto exchange for $200 million in a move to expand its services to institutional clients in the United States.
Johann Kerbrat, General Manager of Robinhood Crypto, told The Wall Street Journal on June 6 that the decision stems from the increasing demand from customers for a wider range of crypto options.
Kerbrat highlighted Bitstamp’s strong reputation, noting its resilience in various market cycles. He emphasized Bitstamp’s secure and user-friendly experience that has attracted both retail and institutional crypto investors.
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Vlad Tenev, Robinhood’s co-founder and CEO, stated on June 6 that acquiring Bitstamp will accelerate their vision by providing access to advanced institutional-grade features like lending, staking, and crypto-as-a-service.
The acquisition deal, pending regulatory approval, is expected to be finalized by mid-2025.
This move comes as Robinhood faces regulatory challenges, including a Wells notice from the US Securities and Exchange Commission (SEC) on May 4 regarding alleged securities violations in their crypto operations.
Dan Gallagher, Chief Legal, Compliance, and Corporate Affairs Officer at Robinhood, expressed disappointment in a blog post on May 6.
After years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to “come in and register,” we are disappointed that the agency has decided to issue a Wells Notice related to our US crypto business.
Despite these hurdles, Robinhood’s acquisition of Bitstamp signifies a significant step in enhancing their cryptocurrency offerings and serving institutional clients.
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