Bloomberg Reports on Robinhood’s Plans to Offer Crypto Futures in the US and Europe Using Bitstamp Licenses After Next Year’s Acquisition
Bloomberg reports that Robinhood Markets is exploring the possibility of offering cryptocurrency futures in the US and Europe in the coming months, according to sources familiar with the matter.
Acquisition of Bitstamp by Robinhood
Robinhood, the commission-free trading app, hopes to utilize licenses from the crypto exchange Bitstamp, which it agreed to acquire last month in a $200 million transaction. The completion of this acquisition is planned for next year.
Once the deal is finalized, Robinhood plans to launch CME-based futures contracts in the US for Bitcoin and Ethereum.
Development, Regulation, and Future Plans
The rapid growth of Robinhood’s crypto business has been a significant driver of its first-quarter financial results, surpassing expectations in May. However, this growth comes with regulatory challenges. Recently, Robinhood revealed that it has received a Wells Notice from the US Securities and Exchange Commission (SEC) regarding certain tokens traded on its platform. A Wells Notice is issued when the regulator considers taking enforcement action against a company.
A spokesperson for Robinhood has denied Bloomberg’s claims, stating that they do not have immediate plans to launch these offerings. Nonetheless, the acquisition of Bitstamp and the interest in CME-based futures contracts indicate a desire to expand and diversify its cryptocurrency offerings.
Robinhood aims to provide advanced financial products, such as futures contracts, to attract a broader and more diverse customer base. However, stringent regulations and ongoing investigations could potentially slow down these ambitions.
