Robinhood to launch in UK with deal to buy crypto app Ziglu

Robinhood to launch in UK with deal to buy crypto app Ziglu

Robinhood mentioned Tuesday it has agreed to buy Ziglu, a London-based fintech app that lets customers commerce bitcoin and a number of other different cryptocurrencies. The acquisition will assist Robinhood develop into the U.Ok. and Europe, the corporate mentioned.

The announcement comes almost two years after Robinhood halted plans to launch in the U.Ok. On the time, the corporate mentioned it was prioritizing its enterprise at house over worldwide growth.

Shares of Robinhood have been up greater than 3% Tuesday.

The deal might present a vital increase to Robinhood’s progress prospects. Its efficiency has weakened for the reason that GameStop buying and selling frenzy final yr.

Robinhood reported a drop in month-to-month lively customers in the fourth quarter of 2021 — to 17.3 million from 18.9 million in the earlier quarter —and mentioned it expects first-quarter 2022 income of lower than $340 million, down 35% from the identical interval a yr in the past. The corporate has misplaced roughly two-thirds of its market worth since debuting on the Nasdaq final summer season.

Vlad Tenev, Robinhood’s CEO and co-founder, mentioned the corporate’s buy of Ziglu “will help us accelerate our global expansion efforts.”

“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 UK and Europe,” Tenev mentioned in a blog post.

Phrases of the acquisition weren’t disclosed. The deal is topic to regulatory approvals and different customary closing circumstances, Robinhood mentioned.

Based in 2018, Ziglu lets customers make funds, make investments in a spread of cryptocurrencies, and earn curiosity on holdings of bitcoin and British kilos sterling.

The corporate has raised a complete of £17.5 million ($22.8 million) to date, together with £13.4 million from retail traders by means of the fairness crowdfunding platform Seedrs. It was final valued at £85 million.

It is likely one of the few crypto companies that has managed to register with the U.Ok.’s Monetary Conduct Authority. Registration is a key requirement for digital asset companies wanting to function in the nation.

The regulator just lately prolonged a deadline for companies to make the lower after quite a few corporations withdrew their functions.

Mark Hipperson, Ziglu’s CEO, was beforehand a co-founder of British digital financial institution Starling. Ziglu and Robinhood “share a common set of goals,” he mentioned.

“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 mentioned.

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