Online discount brokerage Robinhood Markets, Inc. (HOOD) announced on Tuesday, April 19, that it has agreed to buy Ziglu Limited—a London-based fintech app that allows users to trade Bitcoin and other leading 澳洲幸运5官方开奖结果体彩网:cryptocurrencies. Robinhood, known for its 澳洲幸运5官方开奖结果体彩网:commission-free stock trading, said that the acquisition will renew its global expansion push.

"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," said Robinhood's CEO and co-founder Vlad Tenev.

Robinhood, which since 2018 has offered trading in major cryptocurrencies like Bitcoin and Ethereum, initially planned to launch in the United Kingdom in 2020 but shelved the idea due to uncertainty caused by the pandemic. Robinhood's Ziglu acquisition coincides with the discount broker's recent launch of its highly anticipated crypto wallet to 2 million users.

Deal Eases Robinhood's U.K. Crypto Expansion

Ziglu is just one of 33 crypto companies since last year that has successfully registered with the U.K.'s 澳洲幸运5官方开奖结果体彩网:Financial Conduct Authority (FCA), easing Robinhood's expansion of crypto-related products in Britain.

The fintech firm founded by former Barclay's technology head and Starling bank co-founder Mark Hipperson allows users to buy and sell well-known cryptocurrencies, earn interest on their holdings, and make payments using a debit card. "As part of Robinhood, we'll supercharge Robinhood's expansion across Europe and bring better access to crypto and its benefits to millions more customers," Hipperson said.

Following a $9.1 million funding round in October last year, Ziglu was valued at $110.8 million. The company did not disclose the specific terms of the deal but said that it was subject to regulatory approvals and other customary closing conditions. Robinhood noted that it eventually expects to integrate Ziglu into its platform and expand operations throughout Europe.

Pivot to Crypto Amid Slowing Stock Trading Reveღnue

The announcement comes a little over two months after Robinhood cautioned that record pandemic-driven stock trading activity had slowed. The brokerage firm, 澳洲幸运5官方开奖结果体彩网:which went public last year, shot to prominence in 2021 as an army of retail traders used its app to speculate on popular 澳洲幸运5官方开奖结果体彩网:meme stocks, such as GameStop Corp. (GME) and AMC Entertainment Holdings, Inc. (AMC), amid a social media-driven buying frenzy. 

In the December quarter, Robinhood reported an 8% decline of monthly active users on a sequential basis and forecast first-quarter revenue to drop 35% from the year-ago period. However, revenue from cryptocurrencies jumped 304% to $48 million in the fourth quarter, accounting for 18% of the brokerage's total transaction-based revenue. Robinhood shares climbed over 5% on Tuesday, April 19, after the announcement.