The recent acquisition will help Robinhood expand its footprint in the UK and European market as well as further its growth prospects.
Robinhood Markets Inc (NASDAQ: HOOD), the popular trading app for stocks and crypto, is now seeking to expand its footprint in the UK and the European market. On Tuesday, April 19, Robinhood announced the acquisition of London-based fintech app Ziglu.
This app is quite popular in Britain and other parts of Europe for trading Bitcoin and other digital assets. Besides, it is also popular for users to earn yields via its Boost products wherein it allows users to pay using a debit card while moving and spending money worldwide with no additional costs.
The announcement comes just a week after Robinhood launched its crypto wallet feature to millions of users worldwide. On the other hand, Robinhood has been trying to enter the UK market for two years back. However, it had put its plans on hold citing regulatory concerns.
Robinhood adds that the growth in the digital money market presents endless opportunities. Thus, it believes that Ziglu could serve as a gateway to make these opportunities accessible to everyone. Speaking of this development, Vlad Tenev, CEO and Co-Founder of Robinhood Markets said:
“Ziglu’s impressive team of deeply experienced financial services and crypto experts will help us accelerate our global expansion efforts. Together with the Ziglu team, we’ll work to leverage the best of both companies, exploring new ways to innovate and break down barriers for customers across the UK and Europe.”
HOOD Stock Jumps 5%
Following the news, the Robinhood (NASDAQ: HOOD) stock gained more than 5% on Tuesday ending the trading at $11.56. However, the stock is still down more than 65% since its IPO last year.
The company’s performance has also weakened since the GameStop event last year. Recently, Robinhood also reported a drop in monthly active users.
This deal could possibly provide a major boost to the growth prospects of Robinhood. However, Robinhood hasn’t disclosed the terms of the acquisition owing to regulatory considerations and other customary conditions.
With this acquisition, noting changes for Ziglu customers in the near term. However, in the longer term, Ziglu could integrate fully with Robinhood. Mark Hipperson, Founder and CEO of Ziglu, said:
“Ziglu and Robinhood share a common set of goals, working to reduce the barriers to entry for a new generation of investors, and we’re excited to pursue that mission together. 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.”
Read other business news on Coinspeaker.
next