Robinhood, the stock trading app, plans to acquire the Bitstamp crypto exchange for $200 million, aiming to expand its services to institutional clients in the United States.
Johann Kerbrat, General Manager of Robinhood Crypto, explained to The Wall Street Journal on June 6 that this decision is driven by growing customer demand for more diverse crypto options.
Kerbrat emphasized Bitstamp's well-established reputation, noting its resilience through different market cycles. He pointed out that Bitstamp's successful blend of a secure and seamless customer experience has solidified its strong standing among both retail and institutional crypto investors.
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Vlad Tenev, Robinhood's co-founder and CEO, emphasized in a June 6 post on X that acquiring Bitstamp will accelerate its vision by providing access to advanced institutional-grade features such as lending, staking, and crypto-as-a-service.
The acquisition deal, which still requires regulatory approval, is expected to be finalized by mid-2025.
This move comes as Robinhood faces potential regulatory hurdles. On May 4, the company received a Wells notice from the US Securities and Exchange Commission (SEC), indicating potential enforcement action regarding alleged securities violations in Robinhood's crypto operations.
Dan Gallagher, Chief Legal, Compliance, and Corporate Affairs Officer at Robinhood, expressed disappointment in a May 6 blog post, noting:
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 challenges, Robinhood's acquisition of Bitstamp marks a big step in enhancing its cryptocurrency offerings and catering to institutional clients.
