Robinhood to Acquire Bitstamp and Expand Global Crypto Reach

American financial services company, Robinhood Markets, Inc. (Robinhood), has entered an agreement to acquire Bitstamp, a global cryptocurrency exchange. 

Strategically acquiring the global exchange in a US$200m deal is designed to better position Robinhood outside of the United States (US) and aims to bring a trusted and reputable institutional business to Robinhood. It also aims to accelerate Robinhood Crypto’s expansion worldwide, despite warnings from the Securities and Exchange Commission (SEC) over its digital-assets business.

Bitstamp was first founded in 2011 and currently holds offices in Luxembourg, the United Kingdom (UK), Slovenia, Singapore and the US. The acquisition is expected to close in the first half of 2025, subject to customary closing conditions and regulatory approvals.
The news comes in the wake of Robinhood announcing the launch of crypto trading in the European Union (EU).

Robinhood to grow its crypto presence

An acquisition of this scale will enable Robinhood to grow its crypto business worldwide. Bitstamp is a significant venture, as the cryptocurrency exchange is consistently trusted by its clients for reliable trade execution, deep order books and API connectivity. 

Robinhood states that the acquisition will enable it to expand its crypto products across international markets. Specifically in the US, the company will focus on enabling crypto-for-crypto trading among institutional clients.

Bitstamp is the world’s longest-running crypto exchange and allows trading between fiat and multiple cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Ripple. Already offering Bitstamp-as-a-service, institutional lending and staking, Robinhood will be able to enter an expanded crypto space with active and already-established relationships, in addition to greater infrastructure and industry-leading products.

“As the world’s longest running cryptocurrency exchange, Bitstamp is known as one of the most-trusted and transparent crypto platforms worldwide,” states JB Graftieaux, CEO of Bitstamp. “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.”

See FinTech Magazine speaking to JB Graftieaux at Money 20/20 Europe in 2023 below:

A commitment to global innovation

Likewise, Bitstamp’s core spot exchange with over 85 tradable assets will help enhance Robinhood's Crypto offering. Robinhood first started to offer cryptocurrency trading in 2018 and now boasts a crypto revenue of US$126m.

According to the Financial Times, Robinhood company shares have risen 5.4% in early trading to their highest level since December 2021.

The organisation expects to work in collaboration with Bitstamp and foster a culture of innovation and knowledge, as Johann Kerbrat, General Manager of Robinhood Crypto, explains.

“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,” he highlights. “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.”

He adds: “Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood.”

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