Key Takeaways:
-Robinhood now permits cryptocurrency transferabilities to customers in the European Union.
-The new move gives Robinhood’s European users the benefit of ‘self-custody’ assets.
-Robinhood’s crypto trading service was launched in December 2020, but it did initially not permit users to transfer cryptocurrencies out of the platform.
-The company’s General Manager implies that the EU is becoming an attractive market for digital currencies due to crypto-friendly regulations.
-The Bitstamp acquisition by Robinhood is expected to aid its expansion and diversify its crypto business.
Crypto Transfers Now Possible in Europe
Expanding its European footprint, Robinhood announced this Tuesday that it’s now permitting cryptocurrency transfers to and from its platform for Europe-based users. This move enhances the product capabilities the popular retail investing platform is offering to its European consumers, a key aspect of their continuing worldwide expansion efforts.
Robinhood Excites Crypto Traders
A blog post released by Robinhood said that the popular trading app will now allow its European Union customers to deposit and withdraw over 20 digital currencies, including prominent ones such as bitcoin, ethereum, and solana. This upgrade opens new possibilities for Robinhood’s EU-based users, who can now exercise what’s widely known as “self-custody” of assets.
What’s Behind the Upgrade?
The term “self-custody” simply means that these users now own their invested assets in a fully person-owned wallet. Hence, instead of allocating your digital currency to a third-party service, you can now keep it under your direct purview. This undoubtedly gives traders an increased sense of security and control over their investments.
Historically speaking, Robinhood launched its dedicated crypto trading service known as Robinhood Crypto in the EU late last year, in December. This service brought forth the possibility for European users to buy and sell digital currencies right from the comfort of the app. However, it was then unable to enable users to move these currencies out of this platform, either to third-party platforms or to personal, self-custodial wallets.
EU: A Prospectively ‘Attractive’ Crypto Market
Johann Kerbrat, the general manager of Robinhood’s crypto unit, highlighted that he believes that the EU holds significant potential as a captivating market for virtual currencies. Interestingly, this assertion is backed by the EU’s adoption of refined and exceedingly crypto-inclined regulations that govern the use of cryptocurrencies in the region. Among these additions is the Markets in Crypto-Assets (MiCA), a regulation scheme established to streamline cryptocurrency-related rules for every member state of the EU.
Rewarding Users with Crypto
In a move likely to excite many, Robinhood also announced that it will offer European users a chance to get 1% of the value of tokens deposited on its platform back. This amount will be given in the form of equivalent cryptocurrencies that users then choose to transfer into Robinhood.
Robinhood Buys Bitstamp
Another significant update from Robinhood came in June when the firm made a major announcement. The company revealed its intentions to acquire the Luxembourg-based crypto platform Bitstamp. With this move, Robinhood aims to leverage Bitstamp’s exchange technology to bolster its global reach. Marked at approximately $200 million in cash, the acquisition is on track to conclude in the first half of 2025.
Currently, Robinhood’s crypto trading, deposit, and withdrawal functionalities are available only to customers in the European Union, and not for those in the U.K. However, it is worthwhile noting that they started their stock trading service for U.K investors in November last year. At this time, the Robinhood does not offer crypto services to U.K. clients.