Robin Hood It officially shut down BitStamp’s $200 million acquisition, doubles one of the world’s longest-running cryptocurrency exchanges, showing a strategic change in the institutional world beyond retail trading.
The full-speed trading, first announced last year, includes Robinhood’s immediate international footprint, including over 50 active cryptographic licenses across Europe, the UK and Asia, as well as an established institutional customer base that has long been missing from retail trading apps.
For Robinhood, the transaction illustrates a deeper ocean movement, including institutional crypto flows, lending and staking infrastructure, and white-labeled “Crypto-as-a-Service as a Service,” products built for hedge funds, fintechs and registered investment advisors.
“I don’t necessarily call it a pivot,” Johann Carblatt, general manager of Robinhood Crypto, told CNBC. “For us, it combines the strengths of two businesses. We are one of the largest retail markets in the US. There are crypto as a service, advanced APIs, lending, staking, and thanks to that, there are products we don’t have.
Having launched Crypto Trading in 2018 and helped drive Meme-Coin Mania in 2021, Robinhood has been working on reforming as a serious player in the next phase of digital asset finance in recent months.
“The clarity of regulations from Congress and the administration will make more and more institutions want to enter the code,” Kerbrat added.
Bit stamp trading gives it a head start.
Founded in 2011, BitStamp is known for its deep fluidity, compliance and minimalist approach. Although not flashy, BitStamp has overcome multiple market cycles and has built long-standing relationships with institutional partners in Europe and Asia. This is planned to be utilized by Robinhood.
Earlier this month, Robinhood acquired Canadian crypto company Wonderfi to leverage Canada’s established user base.
“Robinhood is a market. It doesn’t match your order. With Bit Stamp, there are robust product products that can build more on the active and advanced trader aspects,” Carblatt said.
“It’s going to be a huge step for us and really diversify our crypto business, from US retail to global products,” he said.
It also gives Robinhood a regulatory lamp to Europe. There, cryptographic rules are clearer compared to the US fragmented approach.
The company has confirmed that it will investigate deep integration over time, maintaining the existing interface and operation of BitStamp. BitStamp is already being used behind the scenes for smart order routing through Robinhood Ledger, the Robinhood agency’s web platform.
“The flow we’re sending to BitStamp makes BitStamp more lively and attracts more institutions,” says Kerbrat.
The acquisition closes at a critical moment for Robin Hood.
Fintech players continue to grow aggressively, with new token lists, staking launches and international product developments. BitStamp’s regulatory track record and licensing portfolio may provide a measure of insulation as Robinhood is pushing further into the new international market.
Carblatt did not rule out any other possible acquisitions.
“If we can find a way to accelerate by at least 18 months or two, there are many big reasons to believe this is a big acquisition, and that’s definitely something we’re seeing,” he said.
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