Financial crypto services platform company Robinhood (Hood) has officially ended the acquisition of its $200 million cryptocurrency trading platform Bitstamp, founded in 2011 and headquartered in Luxembourg.
The all-cash transaction was first announced last year and it has obtained over 50 active crypto licenses in Europe, the UK and Asia, providing Robini with a direct international presence.
How Robinger gains new competitive advantage
The acquisition not only strengthens Robinhood’s regulatory status, but also grants access to established institutional client bases that retail trading platforms previously lack.
according to For Johann Kerbrat, general manager of Robinhood Crypto, the deal is more of a synergy than a complete hub. “We are one of the largest retail markets in the United States,” he noted, stressing that combining the advantages of these two businesses will allow Robinhood to enter new markets without having to start from scratch.
It is worth noting that transactions with BitStamp have features such as order books, cryptocurrency services, advanced APIs, and loan and reserve solutions, which are crucial for institutional participation.
Robinhood, initiated its Crypto Trading Platform In 2018, playing a major role in the 2021 meme frenzy, it has been working hard to reshape itself as a serious contender for the evolving landscape of digital asset financing.
Kerbrat noted that as Congress improves regulatory clarity, more institutions may seek to enter the cryptocurrency space, and Bitstamp’s acquisition provides companies with a pre-emptive start.
Strategic migration into the institutional crypto market
Bitstamp is known for its depth Liquidity and a reputation for compliance. The exchange has successfully navigated multiple market cycles and has established strong relationships with institutional partners in Europe and Asia, a resource Robinhood intends to leverage.
Kerbrat stressed that Robinhood’s market model does not involve matching orders and will benefit from Bitstamp’s product offerings, allowing the company to cater to active and advanced traders more effectively.
The acquisition will also position the company favorably in Europe Cryptocurrency regulations Compared with the fragmented regulatory landscape in the United States, it is a clearer definition.
Currently, the company plans to maintain Bitstamp’s existing interfaces and operations while exploring deeper integrations in the future. BitStamp has worked behind the scenes of smart order routing on Robinhood Ledger, the institutional platform of Robinhood.
With Robinhood expanding, including listing new tokens and launching Staking Services, Bitstamp Deal has arrived at a critical juncture. BitStamp’s regulatory records and licensed portfolios may provide buffers when entering new international markets.
Kerbrat has not ruled out the possibility of further acquisitions, noting: “If we can find a way to accelerate at least 18 months or two years, and we have many good reasons to believe it is a good acquisition, we will definitely see it.”
Hood’s stock rose the day after the announcement of the acquisition and is currently worth $71.72. This has increased by 5% in the past 24 hours.
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