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

Trading platform Robinhood has agreed to acquire UK-based crypto exchange Bitstamp for $200 million in cash.

UK-based Bitstamp was founded in 2011 and is one of the largest crypto exchanges in Europe.

This acquisition is expected to allow Robinhood to expand its crypto presence globally and attract institutional customers.

Trading platform Robinhood (HOOD) has agreed to acquire crypto exchange Bitstamp as it aims to expand its crypto presence globally and attract institutional customers through new product offerings, the company announced Tuesday.

The $200 million all-cash deal is expected to close in the first half of 2025, according to the press release. Barclays Capital and Galaxy Digital advised Robinhood and Bitstamp on the sale, the firms said.

“The acquisition of Bitstamp is an important step in growing our crypto business,” said Johann Kerbrat, managing director of Robinhood Crypto. “Bitstamp’s highly trusted and long-standing global exchange has demonstrated resilience through market cycles… Through this strategic combination, we are better positioned to expand our footprint outside the United States and welcome our institutional customers to Robinhood.”

Bitstamp is a UK-based crypto exchange that was founded in 2011 and quickly became one of the largest crypto exchanges in Europe. It currently offers spot trading of more than 85 cryptocurrencies, as well as other crypto products such as institutional lending and staking. It is one of the most regulated on the market, holding more than 50 licenses and registrations worldwide, according to the statement. It also undergoes regular audits by a global Big Four accounting firm.

Robinhood began offering crypto trading to customers in the European Union in December.

“Bringing Bitstamp’s platform and expertise to the Robinhood ecosystem will provide users with an enhanced trading experience with a continued commitment to compliance, security and customer centricity,” said Bitstamp CEO JB Graftieaux, along with the rest of the leadership team. It fell into place after the sale.

The deal could increase competition in the crypto exchange market, as Robinhood’s international expansion could take more market share from companies like Coinbase (COIN), which is also trying to expand outside North America.