- The fintech giant said it will buy crypto exchange Bitstamp for about $200 million.
- “It makes a ton of sense for Robinhood to get into this space,” said Johann Kerbrat, general manager of Robinhood Crypto.
Robinhood, the publicly traded fintech company that lets users buy and sell stocks and crypto, announced on Thursday that it planned to purchase crypto exchange Bitstamp for about $200 million.
Best known for its role in the memestock craze of 2021, Robinhood has catered to retail investors in crypto, or small-time traders.
Now, it hopes to attract hedge funds, banks, and other trading heavyweights, according to Johann Kerbrat, general manager for Robinhood Crypto.
“We are adding, for the first time, a trusted business with established relationships,” he told DL News, in reference to Bitstamp and its existing service for wealthy traders. He added: “It makes a ton of sense for Robinhood to get into this space.”
Robinhood’s push to expand to a broader set of customers comes amid crypto’s reemergence as a substantial source of cash.
The company’s crypto transaction revenue jumped from $43 million in the fourth quarter to $126 million in the first three months of 2024.
Its fees from crypto trading in the first quarter neared a record, second to only the $233 million it earned in mid-2021.
The deal also comes amid a letter from the US Securities and Exchange Commission last month, warning that Robinhood is the target of potential litigation over its crypto business.
Potential expansion to Asia
Kerbrat not only touched on Bitstamp’s connections to institutional traders but also its international reach.
The crypto exchange says it has over 50 active licences globally, including in Asia.
Robinhood has expanded its crypto trading arm into Europe. When asked if its planned acquisition of Bitstamp meant Asia was up next, Kerbrat wouldn’t say.
“The goal is to keep pushing on the international side,” he said. “And absolutely, Asia is an attractive market.”