Robinhood to Buy Crypto Exchange Bitstamp in Effort to Expand Outside the U.S.

As an experienced financial analyst, I see this acquisition as a strategic move by Robinhood to expand its crypto business and global reach. With Bitstamp being one of the largest crypto exchanges in Europe and having a strong regulatory compliance record, the deal will enable Robinhood to attract institutional clients and expand its footprint outside of the U.S.

Robinhood, the trading platform (HOOD), has revealed plans to broaden its global crypto footprint and draw in institutional investors by acquiring Bitstamp, a renowned crypto exchange. The deal was announced on Tuesday.

Approximately $200 million in cash is projected to be finalized for the transaction in the initial six months of the year 2025, as mentioned in the official announcement. Barclays Capital and Galaxy Digital served as advisors throughout the process for Robinhood and Bitstamp, according to their statements.

“Johann Kerbrat, Robinhood Crypto’s general manager, expressed that buying Bitstamp is a significant move for expanding our cryptocurrency business. With Bitstamp’s well-established and trusted global exchange, we have demonstrated strength throughout market fluctuations. By joining forces strategically, we are now more capable of increasing our reach beyond the US border and catering to institutional clients on Robinhood.”

Established in 2011, Bitstamp is a prominent crypto exchange based in the U.K., known for its extensive offerings in Europe. The platform supports trading of over 85 cryptocurrencies and provides additional crypto products such as institutional lending, staking, and more. With over 50 licenses and registrations worldwide, Bitstamp is one of the most regulated exchanges on the market. Regular audits by a leading global accounting firm further ensure its transparency and trustworthiness.

Robinhood started offering crypto trading to clients in the European Union in December.

As the CEO of Bitstamp, I’m thrilled to announce that our platform and expertise will be integrated into Robinhood’s ecosystem. This collaboration promises an upgraded trading experience for users, while maintaining our unwavering commitment to compliance, security, and prioritizing customer needs. Following the sale, my leadership team and I will continue to oversee Bitstamp’s operations.

The agreement could intensify the rivalry within the cryptocurrency trading platform sector, as Robinhood’s global expansion might capture additional market shares previously held by companies such as Coinbase (COIN). Both Robinhood and Coinbase are working diligently to expand their reach beyond North America.