Cryptocurrency exchange Bitstamp is expanding its institutional business in Australia as it continues its growth in the Asia-Pacific region following Robinhood’s takeover of the exchange.
Bobby Zagotta, Bitstamp’s global chief commercial officer and CEO of Bitstamp US told The Block that the company sees significant potential in serving institutional clients across Asia.
“We see Asia as a great opportunity,” Zagotta said. “Hong Kong and Singapore are our primary markets… We also have a growing business in Australia, and in 2024, we identified Australia as a particular geography we’d like to focus on.”
Zagotta noted that Australia’s exchange market is largely served by local operators. “There are certain value propositions we can bring as a global exchange operator,” he said. “There aren’t many choices available today. Binance is there, and I believe Kraken is there, but in limited ways.”
Currently, Asia accounts for 20% of Bitstamp’s global revenue, while Europe represents about 65%.
Robinhood acquisition
In June, Robinhood announced plans to acquire Bitstamp in a $200 million deal expected to close by the first half of 2025. Zagotta indicated that the exchange is working through regulatory approvals for the acquisition, which is “progressing well.”
“We’re confident in that timeline,” he said, adding that “business as usual” will continue until the deal is finalized.
Once completed, the acquisition could bring substantial retail client flows to Bitstamp through Robinhood’s large retail crypto buying and selling base, making Bitstamp’s markets more attractive.
For its part, Robinhood Markets is planning to offer cryptocurrency futures to its customers in the U.S. and Europe later this year.
The commission-free trading app will leverage the licenses of Bitstamp once the transaction closes next year.
The acquisition of Bitstamp, expected to close next year, will allow Robinhood to use Bitstamp’s licenses to offer perpetual futures for Bitcoin and other tokens in Europe.
If Robinhood begins offering crypto derivatives, it will compete directly with Coinbase, which is already active in the crypto derivatives market.
Despite the growing demand, Robinhood’s crypto business faces several challenges. On May 6, the company received a Wells notice from the U.S. Securities and Exchange Commission (SEC), indicating potential enforcement action against its crypto arm.
The SEC’s investigation focuses on Robinhood’s cryptocurrency listings and custodian operations for alleged securities violations. As a precaution, Robinhood does not offer staking services in the United States, nor does it list certain crypto tokens or provide lending services.
