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Robinhood targets UK market after crypto acquisition

CryptocurrenciesUS-based online trading app Robinhood is set to enter the UK market after agreeing to acquire London-based crypto company Ziglu.

Established in 2014 by Starling Bank co-founder and CTO Mark Hipperson, Ziglu provides trading for 11 cryptocurrencies. It is also one of the few crypto trading firms to have been granted a licence by the Financial Conduct Authority (FCA).

The financial terms of the deal were not disclosed, and while Ziglu will continue to operate under its own brand initially, the crypto firm will be integrated “more fully into Robinhood, bring the Robinhood brand overseas, and work to expand operations beyond the UK into Europe".

According to Robinhood CEO and co-founder Vlad Tenev, the acquisition “will help us accelerate our global expansion efforts”.

It is the second time that Robinhood has attempted a push into the UK market. Previous plans in early 2020 were shelved due to the outbreak of the pandemic and an explosion in online trading in the US, causing Robinhood to focus on its domestic business.

Robinhood ‘s trading volumes increased even further in early 2021 when it found itself at the centre of a retail trading frenzy over GameStop shares.  However, volumes have reduced since then and Robinhood’s share price has fallen by 30% this year, less than 12 months after it listed on the Nasdaq in the US.

The deal is also another example of international players acquiring UK crypto firms. Earlier this year Binance partnered with Eqonex while Austria’s Bitpanda bought Trustology.

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