Robinhood Eying to Expand US Presence by Acquiring Bitstamp $200M Deal.

Robinhood Eying to Expand US Presence through Bitstamp’s $200M Acquisation

On Thursday, the Menlo Park-based trading platform Robinhood Inc. revealed plans to acquire Bitstamp at a $200 million agreement. The proposed acquisition aimed to expand Robinhood’s crypto offering and attract a larger audience.

The Robinhood seeks to introduce new product offerings through the acquisition to meet the diverse needs of the institution’s clients. According to the press release, Robinhood plans to initiate the acquisition deal in Q1 of 2025.

Robinhood to Acquire Bitstamp

The acquisition will undergo regulatory approval to allow Robinhood to operate compliantly. Having been in operation for nearly a decade, Robinhood has been recognized as a compliant company with over 50 licenses in different jurisdictions.

As Robinhood seeks to expand its geographical presence, the trading platform has established regional offices in Luxembourg, the UK, Singapore, the United States, and Slovenia. The attempt to cement its market position compelled Robinhood to prioritize customers’ demands.

The company confirmed the customers demanded that Robinhood expand its crypto product offering. Currently, Robinhood offers 85 crypto assets and other products tailored to meet the demands of institutional clients.

With the changes in the market, Robinhood launched a crypto trading platform last December for European clients. Robinhood ranks among the best-performing crypto exchanges in Europe, competing with Coinbase and KuCoin, among others.

According to the report the Robinhood consults the key stakeholders to make critical decisions to attain the desired success.  Robinhood has consulted Barclay Capital and Galaxy Digital about the Bitstamp acquisition.

Robinhood Seeks to Expand Its Crypto Offering

A statement from the general manager at Robinhood, Johann Kerbrat, revealed that the acquisition of Bitstamp marks a significant milestone in expanding the company’s crypto investment. Citing the uncertainty in the crypto market, Kerbrat described Bitstamp as a resilient company.

The executive stated that Bitstamp has established positive customer relationships to become a “long-standing “trading platform.

The executive believes that the acquisition deal marks a significant milestone for Robinhood in expanding its product offering. Kerbrat believes acquiring Bitstamp will enable Robinhood to meet retail and institutional clients’ needs.

He believes that if the $200 million Bitstamp acquisition proves successful, Robinhood will expand its market presence to the United States. In a subsequent post, the chief executive of Bitstamp, JB Graftieaux, said Robinhood’s acquisition of the crypto exchange will boost the user trading experience.

The CEO envisages that the acquisition of Bitstamp will enable Robinhood to become a customer-centric company that complies with the law. The executive confessed that the acquisition allows Robinhood to retain some of Bitstamp’s staff. Graftieaux will be among the team joining the Robinhood after the acquisition.

Significance of Bitstamp Acquisition

In support of Graftieaux’s remarks, the chief executive of Robinhood, Vlad Tenev, revealed that the surge in demand for crypto products forced the company to explore ways to meet market needs. The executive anticipates the crypto market will soon reorganize the existing financial system.

Also, he confirmed that Robinhood’s acquiring Bitstamp positioned the crypto exchange ahead of the curve amid the dynamic financial world. After the acquisition, Tenev projects that Robinhood and Bitstamp will combine to operate as a spot trading platform offering a complete suite of crypto products, including institutional lending and staking services.

He believes that despite facing legal issues in the US, the acquisition will enable Robinhood to reenter the vibrant market. Earlier this year, the US Securities and Exchange Commission (SEC) issued a well notice to Robinhood.

The SEC claimed that Robinhood breached securities law. After conducting extensive investigations concerning Robinhood’s operation, the SEC noted that the custodial services and product listing violated the Securities Act.

In an interview, the chief legal and compliance officer at Robinhood, Dan Gallagher, revealed the crypto exchange has been seeking to comply with the SEC. The executive expressed his disappointment with the SEC issuing the Well Notice despite the firm efforts to complete the necessary registration processes.

Even though the Well Notice does not imply that the SEC will file charges against Robinhood, the crypto exchange has sought to act in good faith.

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