Quick Take
- Robinhood completes a deal to acquire the UK-based crypto firm Ziglu Limited that allows users to trade bitcoin and other cryptocurrencies.
- Ziglu app allows users to send money, invest in cryptocurrencies, and earn interest on their bitcoin and British pound sterling assets.
- Ziglu is one of the few cryptocurrency companies to have received clearance from the Financial Conduct Authority of the United Kingdom.
- The purchase will aid the company’s expansion aspirations in the United Kingdom and Europe.
Robinhood, the U.S.-based stock trading app, has formed a deal to buy Ziglu Limited, a UK-based fintech app that allows users to trade bitcoin and several other cryptocurrencies. Subject to regulatory clearances and other normal closing circumstances, the acquisition of Ziglu will help Robinhood in its expansion plans in the U.K. and Europe.
Ziglu Limited, the operator of Ziglu crypto platform, is a UK-based electronic money institution and cryptoasset startup. Ziglu allows customers in the United Kingdom to buy and sell eleven cryptocurrencies, earn interest through its ‘Boost’ products, pay with a debit card, and move and spend money without fees, even internationally.
Robinhood said in a press statement that its global expansion will be accelerated with Ziglu’s workforce and the cutting-edge technology.
Ziglu deal revives Robinhood’s UK launch plans
Robinhood initially planned to launch in the U.K. in 2020. However, the company postponed the launch “indefinitely,” more than a year and a half after it began executing the plans for the U.K. market.
Commenting on the decision, Robinhood earlier said in a statement:
“A lot has changed in the world over the past few months, and we’ve made the difficult decision to postpone our UK launch indefinitely. As a company, we are refocusing our efforts on strengthening our core business in the US. We know many people in the UK were excited to invest through Robinhood, and we regret that we cannot deliver our product to UK customers in 2020. Although our global expansion plans are on hold for now, we’re committed to democratising finance for more people around the world. We look forward to the day when we can bring this mission to the UK.”
Robinhood earlier revelaed that it had a limited amount of UK customer transactions in calendar year 2020 as part of its pre-launch testing phase. In fact, A U.K. waitlist was opened in November 2019, which attracted 250,000 signups.
The acquisition of Ziglu revives Robinhood’s UK launch plans, and it will also make its European expansion a bit easier.
Vlad Tenev, CEO and Co-Founder of Robinhood Markets, commented:
“Ziglu’s impressive team of deeply experienced financial services and crypto experts 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.”
The company also said that nothing will change for current Ziglu customers in the near term. Eventually the company plans to integrate Ziglu completely into Robinhood, bring the Robinhood brand overseas, and work to expand operations beyond the UK into Europe.
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