U.S. Institutional Trading Facilitation: Robinhood Buys Bitstamp
Stock trading app Robinhood has plans to: Bitstamp cryptocurrency exchange acquired for $200 million aiming Expands services to institutional clients in the United States.
Johann Kerbrat, General Manager of Robinhood Crypto, explained in an interview with The Wall Street Journal on June 6 that this decision was made for the following reasons: Growing customer demand for more diverse cryptocurrency options.
Kerbrat emphasized: Bitstamp’s solid reputation is, We focus on resilience through various market cycles. He is from Bitstamp A successful blend of safe and seamless customer experiences It has established a strong presence among retail and institutional cryptocurrency investors.
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Robinhood co-founder and CEO Vlad Tenev emphasized in a June 6 post on X that acquiring Bitstamp would: Accelerate your vision by delivering. Get access to advanced institutional-level features including lending, staking, and cryptocurrency-as-a-service.
The acquisition transaction still requires regulatory approval. It is expected to be completed by mid-2025.
This move appears as Robinhood. It faces potential regulatory hurdles. On May 4, the company received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) indicating potential enforcement action for alleged securities violations in Robinhood’s cryptocurrency business.
Dan Gallagher, Robinhood’s chief legal, compliance and corporate affairs officer, expressed his disappointment in a May 6 blog post:
After years of good faith efforts with the SEC for regulatory clarity, including the well-publicized “come in and register” attempt, we are disappointed that the agency has decided to issue Wells notices regarding its U.S. cryptocurrency operations.
Despite these challenges, Robinhood’s acquisition of Bitstamp marks a major step forward in strengthening its cryptocurrency offering and serving institutional customers.
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