What advantages has Robinhood gained thanks to Bitstamp
Robinhood has officially closed the US$200 million deal to acquire European crypto exchange Bitstamp. The two parties entered into an agreement in summer 2024, and a year later, the oldest crypto exchange in the world was transferred to the American online broker.
This acquisition will strengthen Robinhood’s position in the cryptocurrency asset market. Additionally, acquiring Bitstamp opens up new opportunities for the financial company to implement digital products. Robinhood considers institutional investors from the European Union and the United Kingdom to be its key customer category. Robinhood also intends to attract consumers from Asia.
Deal opportunities
Thanks to the deal, the broker gained access to the following opportunities:
– Bitstamp manages 50 active licenses and registrations;
– the buyer can compete with crypto platforms such as Binance and Coinbase;
– the exchange will become Robinhood’s first business in the institutional division;
– Bitstamp is popular in Europe and Asia, which will expand the buyer’s position in these regions;
– the exchange offers more than 85 assets for buyers, as well as staking and lending services.
According to Johann Kerbrat of Robinhood, the brokerage firm is actively developing its cryptocurrency business. The company has chosen Europe as one of its key markets in the near future. Acquiring the oldest digital asset exchange will enable Robinhood to scale its business.
It’s worth noting that Robinhood chose the perfect moment for the deal. The crypto industry is growing rapidly and attracting the interest of many investors. However, there are a number of restrictions in the U.S. in this area. The regulatory system in this sector is imperfect, which affects processes. Therefore, the company has decided to operate in markets with more favorable regulations.
About the Bitstamp exchange
Founded in 2011, Bitstamp operates as one of the world’s oldest cryptocurrency exchanges. The platform facilitates trading of both fiat and digital currencies. These include Ethereum, Bitcoin, Litecoin, Ripple, USD Coin, and more.
Ney Kodric and Damian Marlak are the founders of the exchange. Their goal was to promote Bitcoin and other cryptocurrencies. Originally registered in Slovenia, the company is now based in Luxembourg. There, the platform received a license to conduct financial activities in all European Union countries.
The company pays special attention to the transparency of its activities. Bitstamp regularly audits its digital assets and reports on its financial results. These measures help Bitstamp maintain its status as a reliable platform and demonstrate a high level of liquidity to its customers.
98% of the exchange’s assets are held in cold wallets and are insured against theft. Two-factor authentication is used for user accounts. Clients must confirm asset withdrawals via email.
