Robinhood Markets, Inc. is on the verge of acquiring Bitstamp Ltd., a move that is expected to boost Robinhood’s cryptocurrency offerings and broaden its global presence. The acquisition is projected to be finalized in the first half of 2025 and aims to introduce Bitstamp’s strong and reputable crypto exchange services to Robinhood’s platform, catering to retail and institutional clients in the EU, UK, US, and Asia.
Venturing Beyond Borders
This strategic acquisition signifies Robinhood’s significant expansion beyond the borders of the United States. Bitstamp, established in 2011, operates worldwide with offices in Luxembourg, the UK, Slovenia, Singapore, and the US. With more than 50 active licenses and registrations globally, Bitstamp is poised to facilitate the rapid global growth of Robinhood Crypto.
Introducing Institutional Services
In a groundbreaking move, Robinhood is stepping into the institutional market by leveraging Bitstamp’s established reputation for reliable trade execution, deep order books, and top-tier API connectivity. Bitstamp’s array of institutional services, including its white label solution Bitstamp-as-a-service, institutional lending, and staking, will complement Robinhood’s existing offerings. This acquisition will integrate Bitstamp’s primary spot exchange, which boasts over 85 tradable assets, enriching Robinhood’s crypto portfolio even further.
Insights from Leadership
Johann Kerbrat, General Manager of Robinhood Crypto, highlighted the significance of this acquisition, stating, “The acquisition of Bitstamp represents a significant milestone in the growth of our crypto business. Bitstamp’s globally respected and long-standing exchange has demonstrated resilience throughout various market cycles. By combining customer experience with safety across different regions, the Bitstamp team has built a strong reputation among retail and institutional crypto investors.”
JB Graftieaux, CEO of Bitstamp, expressed his enthusiasm about the merger, saying, “As the world’s oldest cryptocurrency exchange, Bitstamp is renowned as one of the most trustworthy and transparent crypto platforms globally. Integrating Bitstamp’s platform and expertise into Robinhood’s ecosystem will provide users with an enhanced trading experience while maintaining a commitment to compliance, security, and customer-centricity.”
Collaboration and Innovation
The merger will bring together Bitstamp’s team with Robinhood, fostering collaboration and innovation across continents. Both Robinhood and Bitstamp customers can expect to receive the same level of service, security, and reliability. Transparency will remain a central focus throughout the integration process.
Financial and Advisory Details
The final deal consideration for the acquisition is valued at approximately $200 million in cash by Robinhood, subject to customary purchase price adjustments. Regulatory approvals and other standard closing conditions are pending. Barclays Capital Inc. served as Robinhood’s exclusive financial advisor, while Galaxy Digital Partners LLC acted as the exclusive financial advisor to Bitstamp.
As Robinhood and Bitstamp prepare for this transformative acquisition, the crypto market eagerly awaits the enhanced capabilities and expanded reach that this merger is set to bring.