Robinhood's Global Crypto Expansion: Building an Empire Through Strategic Acquisitions

published on 13 May 2025

In a bold move that signals its commitment to becoming a global crypto powerhouse, Robinhood Markets has embarked on an aggressive acquisition strategy to expand its footprint beyond U.S. borders. With recent announcements of acquiring both Bitstamp and WonderFi, Robinhood is methodically assembling the pieces to challenge established players in the cryptocurrency exchange market worldwide.

From Stock Trading App to Global Crypto Giant

Robinhood, initially known for democratizing stock trading with its commission-free model, has progressively pivoted toward cryptocurrency as a core growth driver. What started as a modest addition to its platform in 2018 has evolved into a central strategic focus, with crypto operations now representing a significant portion of its revenue stream.

The numbers tell the story: In Q1 2024, Robinhood reported that its crypto revenue had skyrocketed 232% year-over-year to $126 million, while crypto assets under custody more than doubled to $26 billion. This explosive growth made it clear that Robinhood's future would be increasingly tied to digital assets.

The Bitstamp Acquisition: Entering Europe and Asia

In June 2024, Robinhood announced its agreement to acquire Bitstamp, one of the world's oldest cryptocurrency exchanges founded in 2011, for approximately $200 million. This strategic move represented Robinhood's first major international crypto acquisition and signaled its serious ambitions in the space.

The Bitstamp deal provided Robinhood with several key advantages:

  • Regulatory access: With over 50 active licenses and registrations globally, Bitstamp offered immediate regulatory pathways into the EU, UK, and Asian markets
  • Institutional business: For the first time, Robinhood gained access to institutional crypto clients, expanding beyond its retail-focused model
  • Expanded product offerings: Bitstamp's platform offers over 85 tradable assets along with staking and lending products that complement Robinhood's existing offerings

Johann Kerbrat, SVP and GM of Robinhood Crypto, emphasized the significance of the deal, noting that it would "significantly accelerate Robinhood Crypto's expansion worldwide" and position the company for greater international growth.

The WonderFi Acquisition: Capturing the Canadian Market

Building on this momentum, Robinhood announced in May 2025 its agreement to acquire WonderFi, a Canadian leader in digital asset products and services, for approximately C$250 million (US$179 million) in an all-cash transaction.

WonderFi brings to Robinhood:

  • Established Canadian presence: Through its ownership of Bitbuy and Coinsquare, two of Canada's longest-standing regulated crypto platforms
  • Significant market share: Over C$2.1 billion in assets under custody and C$3.57 billion in crypto trading volume processed in fiscal year 2024
  • Complementary services: WonderFi's offerings, which include crypto trading, staking, and custody, align well with Robinhood's existing products

The WonderFi acquisition represents a premium of approximately 41% to the closing price of WonderFi shares as of May 12, 2025, demonstrating Robinhood's willingness to pay for established players with regulatory approvals and customer bases.

Creating a Global Crypto Ecosystem

These acquisitions reveal Robinhood's comprehensive strategy to build a global crypto trading ecosystem. Rather than building from scratch in new markets—which would involve lengthy regulatory processes and customer acquisition challenges—Robinhood is effectively buying its way into established positions in key markets.

This approach offers several advantages:

  1. Speed to market: By acquiring established players, Robinhood can immediately start operating in new jurisdictions
  2. Regulatory compliance: The acquired companies already have necessary licenses and regulatory relationships
  3. Talent acquisition: Both deals include bringing on experienced teams with local market knowledge
  4. Diversification: Expanding globally helps Robinhood mitigate regulatory risks concentrated in any single market

The strategy is particularly noteworthy given the significant regulatory challenges Robinhood has faced in the U.S. market. Just last month, the company received a Wells notice from the SEC regarding its crypto activities, indicating potential enforcement action. By expanding internationally, Robinhood positions itself to continue growing its crypto business even if it faces additional regulatory hurdles in its home market.

What's Next for Robinhood's Global Expansion?

With footholds now established or pending in Canada, Europe, and parts of Asia, what might be next for Robinhood's international crypto ambitions?

Several possibilities emerge:

  • Latin America: Countries like Brazil and Argentina have shown significant crypto adoption rates
  • Middle East: The UAE and other Gulf states have created crypto-friendly regulatory frameworks
  • Southeast Asia: Markets like Singapore and Indonesia represent large opportunities with growing crypto usage

Additionally, Robinhood may seek to expand its product offerings across these markets, potentially including:

  • Expanded staking services to capitalize on proof-of-stake blockchains
  • Crypto derivatives to compete with platforms like Deribit (recently acquired by Coinbase)
  • Web3 integrations to bridge traditional finance with decentralized finance (DeFi)

The Competitive Landscape

Robinhood's aggressive moves place it in direct competition with established global crypto exchanges like Binance and Coinbase, as well as traditional financial institutions increasingly entering the space. This competition is intensifying as evidenced by other recent major crypto industry acquisitions, including Coinbase's $2.9 billion purchase of Deribit and Ripple's $1.25 billion acquisition of Hidden Road.

What sets Robinhood apart is its ability to leverage its existing brand recognition and user-friendly interface that millions of users already know from stock trading. By bringing this same accessible approach to crypto markets globally, Robinhood aims to lower barriers to entry for new cryptocurrency users.

Conclusion: A New Crypto Powerhouse Emerges

Through its strategic acquisitions of Bitstamp and WonderFi, Robinhood is transforming from a U.S.-focused stock trading app into a formidable global cryptocurrency platform. These moves represent a clear vision to build a comprehensive cryptocurrency ecosystem that spans continents and serves both retail and institutional clients.

As Robinhood continues this expansion, the cryptocurrency exchange landscape is likely to undergo further consolidation, with larger players acquiring smaller, regionally-focused exchanges to enhance their global footprint. For consumers, this may ultimately lead to more integrated services, potentially lower fees through economies of scale, and easier access to cryptocurrency markets worldwide.

The race to become the world's dominant cryptocurrency platform is intensifying, and Robinhood has made it clear it intends to be a major contender in this rapidly evolving space.

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