Robinhood Introduces Crypto Transfers for European Users

TLDR

• Robinhood now offers crypto transfers for European customers
• Over 20 digital currencies supported, including Bitcoin and Ethereum
• Move enables “self-custody” of assets for users
• EU seen as attractive market due to crypto-friendly regulations
• Robinhood acquiring Bitstamp to expand global reach and capabilities

Robinhood, the popular retail investing platform, has announced a significant expansion of its cryptocurrency services for European customers.

The company now offers users in the European Union the ability to transfer cryptocurrencies in and out of its app, a move that broadens its product capabilities in the region and marks a step forward in its international expansion efforts.

The new feature, announced on Tuesday, October 1, 2024, allows customers in the EU to deposit and withdraw more than 20 digital currencies through Robinhood’s platform.

These include major cryptocurrencies such as Bitcoin, Ethereum, Solana, and USD Coin.

This development effectively gives Robinhood’s European users the option of “self-custody,” meaning they can take full ownership of their digital assets in a wallet they control, rather than relying on a third-party platform to hold their funds.

Johann Kerbrat, general manager of Robinhood’s crypto unit, expressed optimism about the potential of the EU market for digital currencies.

He cited the EU’s upcoming Markets in Crypto-Assets (MiCA) regulation as a factor that could make the region particularly attractive for crypto businesses.

MiCA aims to establish harmonized rules for the crypto sector across all 27 EU member states, potentially creating a unified and more navigable regulatory landscape.

To incentivize users to try the new transfer feature, Robinhood is offering a limited-time promotion. European customers can receive 1% of the value of tokens deposited on its platform back in the form of the equivalent cryptocurrency they transfer into Robinhood.

This expansion comes at a time when Robinhood is facing a more challenging regulatory environment in the United States.

The U.S. Securities and Exchange Commission (SEC) has been taking legal action against several crypto companies, including Coinbase, Binance, and Ripple, alleging that they are dealing in unregistered securities.

Kerbrat expressed disappointment with the U.S. regulatory approach, describing it as “regulation by enforcement.”

In a move to further strengthen its global position, Robinhood announced in June its plan to acquire Bitstamp, a Luxembourg-based crypto platform.

The deal, valued at approximately $200 million in cash, is expected to close in the first half of 2025. This acquisition is set to provide Robinhood with access to additional international markets and valuable regulatory permissions worldwide.

Bitstamp currently holds over 50 licenses and registrations globally, including in Singapore, the UK, and the EU.

The Bitstamp acquisition is also expected to help Robinhood diversify its crypto business to serve more institutional investors.

Bitstamp offers a “crypto-as-a-service” solution that helps banks and other financial firms launch their own crypto capabilities, potentially opening new revenue streams for Robinhood.