Robinhood isn’t just flirting with crypto anymore. It’s putting a ring on it.
The trading app synonymous with meme stocks and millennial investors announced this week it’s acquiring Bitstamp—one of the oldest cryptocurrency exchanges in the game—for $200 million in cash. Pending regulatory approval, the deal is expected to close in the first half of 2025. But make no mistake: this is a clear pivot toward crypto’s grown-up table.
Bitstamp, launched back in 2011, has built its reputation on being reliable, regulatory-minded, and boring in all the best ways. That’s exactly what Robinhood needs right now.
Why Now?
Robinhood’s timing isn’t random. Just weeks ago, the company received a Wells Notice from the SEC, signaling possible enforcement actions related to how it lists and handles crypto assets. CEO Vlad Tenev didn’t mince words, accusing the agency of overreach and promising a fight. But instead of retreating, Robinhood is expanding—aggressively.
By bringing Bitstamp into the fold, Robinhood gets more than just technology and market share. It gets credibility. Bitstamp holds over 50 licenses and registrations globally, giving Robinhood immediate access to regulated markets across the EU, UK, US, and parts of Asia.
Institutional Ambitions
What sets this move apart is Robinhood’s entry into the institutional space. Bitstamp already has a footprint among professional traders, with deep liquidity, stable infrastructure, and a reputation for tight execution. It also offers services like white-label crypto exchanges, institutional lending, and staking—none of which Robinhood has done at scale.
“The acquisition of Bitstamp is a major step in growing our crypto business,” said Johann Kerbrat, GM of Robinhood Crypto. “Their trusted and longstanding global exchange has shown resilience through market cycles.”
In plain English: they’ve been through the fire. And they’re still standing.
Behind the Curtain: A Crypto Boom
This isn’t just about future plans. Robinhood’s crypto trading volumes surged 224% in Q1, hitting $36 billion. Revenue from crypto jumped 232% to $126 million. Its users now hold $26.2 billion in crypto assets, up 78% from late 2023.
So even while regulators loom and headlines scream about enforcement, the numbers say something else: crypto is working for Robinhood.
Big Picture: A Calculated Risk
Acquiring Bitstamp may help Robinhood win favor with regulators by aligning with a company that has long played by the rules. But it’s still a gamble—especially with the SEC breathing down its neck. The $200 million price tag signals Robinhood is serious about global crypto markets, not just as a feature on an app, but as a core pillar of its business.
And now, it has a new weapon in the fight for crypto legitimacy.
