(Bloomberg) — Robinhood Markets Inc. agreed to acquire Ziglu Ltd., a London-based crypto and payments company, ending the U.S. brokerage’s long pause on international expansion.
The transaction will give Robinhood a platform that allows customers to buy and sell 11 cryptocurrencies as well as move and spend money abroad, the Menlo Park, California-based company said Tuesday in a statement. Terms weren’t disclosed.
Robinhood tabled its plans to expand in Europe and Asia as U.S. retail trading exploded after the start of the pandemic.
“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 U.K. and Europe,” Robinhood Chief Executive Officer Vlad Tenev said in the statement.
The acquisition also gives Robinhood a jump-start in the U.K.’s crypto industry, which is subject to stringent anti-money laundering regulations. Ziglu is among 34 firms on the Financial Conduct Authority’s register of cryptoasset businesses. More than 100 companies have yet to receive that distinction, leaving them in regulatory limbo.
Shares of Robinhood rose 1.8% to $11.19 at 10:44 a.m. in New York. The stock has plunged 71% since its July initial public offering.
(Updates with U.K. regulator in fifth paragraph, share price in last.)
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