Robinhood (HOOD) Acquires Crypto App Ziglu

Rate this post
Robinhood (HOOD) Acquires Crypto App Ziglu

Discount brokerage online On Tuesday, April 19, Robinhood Markets, Inc. (HOOD) announced that it has agreed to acquire Ziglu Limited, a London-based fintech software that enables users to trade Bitcoin and other prominent cryptocurrencies. The purchase will reinvigorate Robinhood’s worldwide growth effort, according to the company famed for its commission-free stock trading. 1

Key Takeaways

  • Robinhood has agreed to purchase London-based fintech cryptocurrency app Ziglu as part of its worldwide development strategy.
  • Ziglu is one of the few cryptocurrency startups that has successfully registered with the Financial Conduct Authority in the United Kingdom.
  • Robinhood had intended to debut in the United Kingdom in 2020, but postponed the proposal because to the pandemic’s unpredictability.
  • In the fourth quarter, Robinhood’s income from cryptocurrency increased 304% to $48 million.

“We’ll work together with the Ziglu team to use the best of both firms, discovering new ways to innovate and break down barriers for clients throughout the United Kingdom and Europe,” said Robinhood CEO and co-founder Vlad Tenev. 1

Robinhood, which has been offering trading in major cryptocurrencies such as Bitcoin and Ethereum since 2018, had intended to debut in the United Kingdom in 2020 but delayed the project because to the pandemic’s unpredictability. The purchase of Ziglu by Robinhood comes on the heels of the discount broker’s recent introduction of its much anticipated crypto wallet to 2 million consumers. 2

Deal Eases Robinhood’s U.K. Crypto Expansion

Ziglu is only one of 33 crypto businesses that have successfully registered with the United Kingdom’s Financial Conduct Authority (FCA) since last year, enabling Robinhood’s growth of crypto-related goods in the country. 3

  Over 1M Join Waitlist for Robinhood Crypto Trading

The United Kingdom government announced ambitions earlier this year to make the country a worldwide centre for cryptoasset technology and investment. 4

Former Barclay’s technology chief and Starling bank co-founder Mark Hipperson launched the fintech startup, which lets users to purchase and trade well-known cryptocurrencies, earn interest on their holdings, and make payments using a debit card. “As part of Robinhood, we’ll accelerate Robinhood’s growth throughout Europe and provide millions more clients with greater access to cryptocurrency and its advantages,” Hipperson added. 1

Ziglu was valued at $110.8 million after a $9.1 million investment round in October of last year. The business did not reveal the particular terms of the transaction, but did state that it was subject to regulatory clearances and other standard closing conditions. Robinhood said that it plans to incorporate Ziglu into its platform and extend operations across Europe in the future. 3

Pivot to Crypto Amid Slowing Stock Trading Revenue

The news comes little over two months after Robinhood warned that record pandemic-related stock trading volume had dropped. The brokerage business, which went public last year, sprang to fame in 2021 when an army of retail traders used its app to speculate on famous meme stocks like GameStop Corp. (GME) and AMC Entertainment Holdings, Inc. (AMC) during a social media-fueled purchasing frenzy.

A meme stock is a company’s stock that has garnered a cult-like following online and via social media channels. Through tales and dialogues extended in discussion threads on websites like Reddit and messages to followers on platforms like Twitter and Facebook, these online communities may go on to generate enthusiasm around a stock.

  Citigroup Planning Innovative Crypto Trading Mechanism

In the December quarter, Robinhood reported an 8% sequential reduction in monthly active users and forecasted a 35% loss in first-quarter revenue from the previous year. However, income from cryptocurrencies increased 304% to $48 million in the fourth quarter, representing for 18% of overall transaction-based revenue at the brokerage. Following the news, Robinhood shares increased by more than 5% on Tuesday, April 19.5

You are looking for information, articles, knowledge about the topic Robinhood (HOOD) Acquires Crypto App Ziglu on internet, you do not find the information you need! Here are the best content compiled and compiled by the team, along with other related topics such as: Cryptocurrency.

Similar Posts