Robinhood Executives Predict Growth Through Bitstamp Acquisition, Bringing Successful Stock Strategies to Crypto – Robinhood Markets (HOOD on NASDAQ)

Investment platform Robinhood Markets
HOOD
is continuously expanding its range of services
for individual investors.

A significant enhancement to their service range is in the digital currency space, now bolstered by the
cryptocurrency sector following the
purchase
of
Bitstamp
.

“We offer a wide array of products,” said Robinhood Crypto’s General Manager Johann Kerbrat, during an exchange with Benzinga’s Zunaid Suleman at the 2024 HOOD Summit in Miami.

Robinhood also facilitates the trading of major cryptocurrencies like Bitcoin
BTC/USD,
Ethereum
ETH/USD,
and Dogecoin
DOGE/USD.

On Robinhood Crypto, customers have the ability to self-custody and exercise control over their wallets, noted Kerbrat.

Kerbrat emphasizes the importance of starting with small investments and gaining knowledge of the assets in the crypto landscape.

“Education is paramount,” he states.

Also Read:
Futures and Index Options Trading Now on Robinhood

Strategic Growth with Bitstamp’s Integration: In June, Robinhood
made the announcement
that it acquired digital currency exchange Bitstamp, a deal set to conclude in early 2025, per Kerbrat.

The rationale behind acquiring Bitstamp encompasses three major aims as highlighted by Kerbrat:

• Facilitating international growth, due to Bitstamp’s various licenses
• Integration of an established trading platform
• Enhancing institutional business through pre-existing relationships with large entities

Since Robinhood operates mainly as an intermediary, redirecting orders to market makers, this move hints at changes in such operations thanks to Bitstamp’s involvement.

“The Bitstamp exchange allows us to develop more sophisticated futures trading tools,” Kerbrat conveyed to Benzinga.

The entry of institutions into the crypto market, propelled by the sanctioning of Bitcoin ETFs, signals an opportune moment for us to capitalize on this venture,” he assessed.

Robinhood: A Comprehensive Financial Suite The inclusion of Robinhood Crypto is designed to augment the company’s existing array of services, like stock and options trading, explained Kerbrat.

“Our priority was to make financial instruments sought after by our customers available to them.”

According to Kerbrat, retail investors were interested in cryptocurrencies but concerned about managing their wallets and facing elevated fees on other platforms.

“We applied the strengths from our stock services directly to the crypto sphere.”

Robinhood users enjoy the seamless transition between asset classes, such as the ability to sell a stock and purchase Bitcoin the subsequent day.

Looking Ahead: According to Kerbrat, regulatory developments and continued enhancement of blockchain technology are poised to drive growth in the cryptocurrency sector.

The emerging use cases for blockchain, particularly in the finance industry due to institutional engagement, are notable trends, as per the Robinhood executive.

“These are developments that are likely to grow further,” he says.

Kerbrat calls for more regulatory frameworks for crypto’s expansion, stating, “In the U.S. we require a clear framework that we can comply with. We are adept at working alongside regulators.”

Coming Up Next:

Benzinga’s Zunaid Suleman on the left, conversing with Robinhood Crypto General Manager Johann Kerbrat at the 2024 Hood Summit.