Robinhood, a popular US-based stock and cryptocurrency trading platform, has announced the signing of a contract to acquire Ziglu, an electronic money company that allows users to buy and sell 11 different cryptocurrencies as well as make payments overseas. This happens to be Robinhood''s second significant acquisition into the UK market following the withdrawal of a plan to expand into the market in July 2020. The push comes just two weeks after the company extended crypto wallet services to over two million US customers.
"We''ve signed an agreement to join Robinhood, and we couldn''t be more excited," Ziglu told customers in a message as per The Block. "Ziglu and Robinhood share a common DNA, partnering to alleviate the barriers to entry for a new generation of investors, and we''re looking forward to continuing it together."
"[t]his agreement is subject to regulatory approval," according to the firm, and for the time being, nothing will change.
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"As we strive to expand internationally, we''re pleased to announce that we have signed a contract to acquire Ziglu Limited, a UK-based electronic money company and crypto asset firm, subject to regulatory approvals and other unusual closing conditions," Robinhood said in its own statement.
Robinhood claims that in the near future, nothing will change for Ziglu customers, but that eventually it will integrate the UK outfit "more fully into Robinhood, bring the Robinhood brand overseas, and work to expand its operations beyond the United Kingdom into Europe."
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Robinhood Markets, the CEO, said: "We''ll collaborate with the Ziglu team to exploit both companies'' potential, enquiring possibilities to innovate and eliminate barriers for customers in the United Kingdom and Europe."
It remains to be seen whether the latest approach will help reverse Robinhood''s decline, which saw shares drop 40% this year, and as the company faces a significant slowdown in market activity, both in stocks and cryptocurrencies.