Trading app Robinhood said on Tuesday it will acquire UK-based crypto exchange Ziglu. The move comes as the equity trading app looks to expand further in offering cryptocurrency trade.
The acquisition also marks Robinhood’s second attempt to expand into the UK since a failed plan to launch a stock trading app in 2020. With Ziglu, Robinhood now owns one of the few crypto firms authorized to operate in Britain.
Ziglu offers trading in 11 cryptocurrencies, and also holds a coveted UK electronic money license. Robinhood said the buy is just the first step in its plan to expand beyond UK and into Europe.
As part of Robinhood, we’ll supercharge Robinhood’s expansion across Europe and bring better access to crypto and its benefits to millions more customers.
-Ziglu CEO and Founder Mark Hipperson
Robinhood plans aggressive push into crypto
The acquisition was announced by Robinhood in its blog for an undisclosed amount. It is also subject to approval from UK’s financial regulators, including the Financial Conduct Authority (FCA), a body known for its strict stance on crypto.
The move also marks the firm’s attempts to diversify beyond stock trading. The firm had warned last year that a COVID-driven boom in retail trading was beginning to slow down.
We’ve set aggressive goals to start opening our crypto platform up to customers internationally.
-Robinhood
Earlier this month, Robinhood listed several new cryptocurrencies, including popular memecoin Shiba Inu (SHIB). But shareholders did not seem impressed by the move, and the app’s stock is trading down nearly 16% in April.
The firm now plans to integrate Ziglu fully into its platform in the long term.
Crypto retail trade a crowded market
Robinhood’s plans to push further into the retail crypto space are expected to meet stiff competition from larger, already established players.
Bigger exchanges including Binance, FTX and Coinbase already have a much bigger footprint in the crypto retail space. It is unclear whether a brokerage-free model will be applicable in the crypto space.
The app had seen an increase in monthly average users in the fourth quarter of 2021, from the prior year. But whether the Robinhood can translate stock trading success into the crypto space remains to be seen.
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Source: https://coingape.com/breaking-after-listing-shiba-inu-robinhood-to-buy-uk-crypto-firm-ziglu/