Nasdaq-listed trading platform Robinhood announced Tuesday that it has signed an agreement to acquire Ziglu, a London-based electronic money institution and crypto asset firm regulated by the UK Financial Conduct Authority (FCA). The acquisition is part of Robinhood's international expansion plan, with the company stating it “sees a big opportunity in serving customers across the globe.”
Acquisition Details
Subject to regulatory approvals and other customary closing conditions, the deal will see Robinhood take full control of Ziglu, whose valuation reached £85 million during a £7 million funding round in November 2021. Robinhood emphasized its mission to “democratize finance for all,” noting that earlier this year, it announced aggressive goals to open its crypto platform to customers internationally.
About Ziglu
Founded in 2014, Ziglu enables UK-based retail investors to buy and sell 11 cryptocurrencies. Users can also earn yield via Ziglu's “Boost” products, spend using a debit card, and transfer money globally without fees. The company is fully regulated by the FCA, providing a robust compliance framework for Robinhood's entry into the European market.
Ziglu CEO Mark Hipperson stated that both companies “share a common set of goals,” adding: “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.”
International Strategy
In the near term, nothing will change for current Ziglu customers. However, Robinhood plans to fully integrate Ziglu to “bring the Robinhood brand overseas” and expand operations beyond the UK into Europe. Robinhood's chief brokerage officer Steve Quirk explained in February that the global expansion would be “crypto first,” as the regulatory path for global traction is likely through crypto before other product components.
Robinhood recently rolled out crypto wallets to over two million customers and added support for four additional cryptocurrencies this month, including the meme coin Shiba Inu (SHIB). The platform now supports Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Compound (COMP), Polygon (MATIC), and Solana (SOL).
The acquisition represents a strategic move into Europe, leveraging Ziglu's existing FCA license and user base. Analysts view this as a significant step for Robinhood to diversify its revenue streams beyond US markets and tap into the growing European crypto adoption.