Fintech
Robinhood Crypto Chief Says Bitstamp Will Help Attract Wealthy Investors – DL News
- The fintech giant said it will buy cryptocurrency exchange Bitstamp for around $200 million.
- “It makes a lot of sense for Robinhood to enter this space,” said Johann Kerbrat, general manager of Robinhood Crypto.
Robinhood, the publicly traded fintech company that allows users to buy and sell stocks and cryptocurrencies, announced on Thursday it had planned to buy cryptocurrency exchange Bitstamp for around $200 million.
Best known for its role in the memestock craze of 2021, Robinhood targeted retail cryptocurrency investors or small traders.
Now, it hopes to attract hedge funds, banks and other trading heavyweights, according to Johann Kerbrat, chief executive of Robinhood Crypto.
“We are adding, for the first time, a trusted company with established relationships,” he told DL News, in reference to Bitstamp and its existing service for wealthy merchants. He added: “It makes a lot of sense for Robinhood to enter this space.”
Robinhood’s push to expand to a broader group of customers comes amid the re-emergence of cryptocurrencies as a substantial source of money.
The company’s crypto transaction revenue rose from $43 million in the fourth quarter to $126 million in the first three months of 2024.
Its first-quarter cryptocurrency trading fees neared a record, second only to the $233 million it earned in mid-2021.
The deal also comes in the midst of a letter by the U.S. Securities and Exchange Commission last month, warning that Robinhood is the target of potential litigation over its cryptocurrency business.
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Potential expansion into Asia
Kerbrat not only touched on Bitstamp’s connections with institutional traders, but also its international reach.
The cryptocurrency exchange claims to have over 50 active licenses globally, including Asia.
Robinhood has expanded its cryptocurrency trading division into Europe. Asked whether Bitstamp’s planned acquisition means Asia will be the next move, Kerbrat did not respond.
“The goal is to continue pushing internationally,” he said. “And absolutely, Asia is an attractive market.”