Robinhood Markets Inc. has decided to purchase Ziglu Ltd., a London-based crypto and payments business, putting an end to the U.S brokerage’s long hiatus from foreign expansion.
According to a statement released Tuesday by the Menlo Park, California-based business, the acquisition would offer Robinhood a platform that will allow customers to buy and sell 11 cryptocurrencies, as well as move and spend money abroad.
Expansion in Europe and Asia
As retail trading in the U.S soared following the start of the pandemic, Robinhood put its intentions to expand in Europe and Asia.
In a statement, Robinhood Chief Executive Officer Vlad Tenev stated, “We’ll work together with the Ziglu team to utilize the best of both firms, exploring new ways to innovate and break down barriers for clients across the U.K. and Europe.”
The acquisition also provides Robinhood an advantage in the UK’s crypto sector, which is overseen by tight anti-money laundering regulations.
Ziglu is one of 34 companies included on the Financial Conduct Authority’s roster of crypto assets businesses. More than a hundred companies have yet to receive this recognition, putting them in legal uncertainty.
Ziglu, which was founded in 2014, allows ordinary investors in the United Kingdom to buy and sell 11 cryptocurrencies.
Users can also earn yield through Ziglu’s “Boost” products, pay with a debit card, and transfer and spend money without fees anywhere in the world, according to the release.
In the United Kingdom, the Financial Conduct Authority oversees the cryptocurrency industry (FCA). When it raised £7 million last November, the company was valued at £85 million.
In January, Robinhood revealed its global expansion plans, noting that it “believes in the great potential of the crypto economy and sees a major opportunity in serving clients around the world.”
More than two million Robinhood clients now have access to bitcoin wallets. This month, the site extended support for four more cryptocurrencies, including meme crypto Shiba Inu.
Along with bitcoin (BTC), bitcoin cash (BCH), Bitcoin SV (BSV), dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), litecoin (LTC), compound (COMP), polygon (MATIC), and Solana, SHIB is now supported on the site (SOL).
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.