Robinhood Markets, Inc. is gearing up to acquire Bitstamp Ltd., a strategic move that will not only bolster Robinhood’s cryptocurrency services but also broaden its global presence. The acquisition is slated to be finalized in the first half of 2025 and is aimed at integrating Bitstamp’s esteemed crypto exchange services into Robinhood’s platform, catering to retail and institutional clients across the EU, UK, US, and Asia.
Venturing Beyond Borders
This acquisition signifies Robinhood’s ambitious expansion beyond the borders of the United States. Bitstamp, established in 2011, operates on a global scale with offices in various countries including Luxembourg, the UK, Slovenia, Singapore, and the US. With more than 50 active licenses and registrations worldwide, Bitstamp is poised to facilitate the rapid global growth of Robinhood Crypto.
Introducing Institutional Offerings
In a groundbreaking move, Robinhood is venturing into the institutional market by leveraging Bitstamp’s solid reputation for secure trade execution, extensive order books, and top-notch API connectivity. Bitstamp’s suite of institutional services, such as its white label solution Bitstamp-as-a-service, institutional lending, and staking, will complement Robinhood’s existing offerings. By integrating Bitstamp’s core spot exchange, which boasts over 85 tradable assets, Robinhood’s crypto portfolio will be further enriched.
Insights from Leadership
Johann Kerbrat, General Manager of Robinhood Crypto, highlighted the significance of the acquisition: “The acquisition of Bitstamp is a pivotal move in expanding our crypto business. Bitstamp’s globally trusted exchange has demonstrated resilience through various market cycles. By combining customer-centricity with safety measures across different regions, the Bitstamp team has cultivated a strong reputation among both retail and institutional crypto investors.”
JB Graftieaux, CEO of Bitstamp, expressed enthusiasm about the merger: “As the world’s longest-standing cryptocurrency exchange, Bitstamp is renowned as one of the most reliable and transparent crypto platforms globally. Integrating Bitstamp’s platform and expertise into Robinhood’s ecosystem will enhance users’ trading experience while upholding a commitment to compliance, security, and customer satisfaction.”
Collaboration and Advancement
The merger will bring together Bitstamp’s team with Robinhood, fostering collaboration and innovation across continents. Customers of both Robinhood and Bitstamp can expect to receive the same high level of service, security, and dependability. Transparency will remain a key focus throughout the integration process.
Financial and Advisory Details
The final deal consideration for the acquisition stands at approximately $200 million in cash, subject to standard purchase price adjustments. The completion of the acquisition is contingent on regulatory approvals and other customary closing conditions. Barclays Capital Inc. acted as the exclusive financial advisor to Robinhood, while Galaxy Digital Partners LLC served as the exclusive financial advisor to Bitstamp.
As Robinhood and Bitstamp gear up for this transformative acquisition, the crypto market eagerly anticipates the enhanced capabilities and expanded reach that this merger is poised to deliver.