Retail investing platform Robinhood recently announced that it is expanding its product capabilities in Europe by offering customers in the region the ability to transfer cryptocurrencies in and out of its app. Customers in the European Union will now be able to deposit and withdraw more than 20 digital currencies, including bitcoin, ethereum, solana, and USD coin. This move allows users to “self-custody” their assets, meaning they can take ownership of their cryptocurrency in a fully owned wallet rather than trusting a third-party platform.
In December of last year, Robinhood launched its crypto trading service, Robinhood Crypto, in the EU for the first time, allowing users to buy and sell cryptocurrencies. However, users were not able to move their assets away from the platform until now. Johann Kerbrat, general manager of Robinhood’s crypto unit, believes that the EU has the potential to become a significant market for digital currencies, citing the crypto-friendly regulations being adopted by the bloc, such as the Markets in Crypto-Assets (MiCA) regulation.
Robinhood is offering a limited-time promotion for European customers, giving them 1% of the value of tokens deposited on the platform back in the form of the equivalent cryptocurrency they transfer into Robinhood. This comes at a time when U.S. crypto firms are facing regulatory challenges, with several companies, including Coinbase, Binance, and Ripple, being sued by the SEC over claims of dealing in unregistered securities. Robinhood is regulated by the SEC, FINRA, and the New York State Department of Financial Services in the U.S.
In June, Robinhood announced its acquisition of Luxembourg-based crypto platform Bitstamp in a deal valued at approximately $200 million. This acquisition will allow Robinhood to gain access to more international markets and regulatory permissions. Bitstamp holds over 50 licenses and registrations globally, including in Singapore, the U.K., and the EU. The deal with Bitstamp is expected to help Robinhood diversify its crypto business to serve more institutional investors and offer a “crypto-as-a-service” option for banks and other financial firms.
Robinhood’s crypto trading, deposit, and withdrawal features are currently only available to customers in the EU, not in the U.K. The company launched its popular stock trading service in the U.K. last year, but has not yet offered crypto services to U.K. clients. Despite the challenges faced by U.S. crypto firms with regulators, Robinhood is expanding its offerings in Europe and looking to leverage its acquisition of Bitstamp to further expand its reach globally and serve institutional investors.
