Robinhood Ventures Into Institutional Crypto Space with Bitstamp Buyout

Robinhood Markets, Inc. has announced its agreement to acquire Bitstamp Ltd, a global cryptocurrency exchange. Founded in 2011, Bitstamp operates offices in Luxembourg, the UK, Slovenia, Singapore, and the US.

The acquisition is expected to expedite Robinhood Crypto's global expansion. Bitstamp holds over 50 active licenses and registrations worldwide, attracting customers from the EU, UK, US, and Asia to Robinhood's platform.

Entering Institutional Crypto Realm

This acquisition marks Robinhood's venture into the institutional business, leveraging Bitstamp's reputation for reliable trade execution, deep order books, and leading API connectivity. Bitstamp's institutional offerings, including white label solution Bitstamp-as-a-service, institutional lending, and staking, will provide Robinhood with established relationships and industry-leading products.

Bitstamp's core spot exchange offers over 85 tradable assets, along with products like staking and lending, which will enhance Robinhood's Crypto offering.

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

We’re accelerating Robinhood Crypto’s worldwide expansion. Robinhood has officially entered into an agreement to acquire @Bitstamp, a global cryptocurrency exchange with customers across the EU, UK, US and Asia. More details: https://t.co/wk3x02z0rU pic.twitter.com/aadKzhCxlx

Pending Regulatory Green Light

The final deal consideration is expected to be approximately $200 million in cash, subject to customary purchase price adjustments. The acquisition is pending regulatory approvals and other closing conditions, with a projected completion in the first half of 2025. Barclays Capital Inc. acted as the exclusive financial advisor to Robinhood, while Galaxy Digital Partners LLC advised Bitstamp.

“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," said Johann Kerbrat, General Manager of Robinhood Crypto.

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