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

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

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

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

The deal may present a vital increase to Robinhood’s progress prospects. Its performance has weakened because the GameStop buying and selling frenzy final 12 months.

Robinhood reported a drop in month-to-month lively customers within the fourth quarter of 2021 — from 17.Three million to 18.9 million within the earlier quarter —and mentioned it expects first-quarter 2022 income of lower than $340 million, down 35% from the identical interval a 12 months in the past. The corporate has misplaced roughly two-thirds of its 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 assist us speed up our world enlargement efforts.”

“Along with the Ziglu workforce, we’ll work to leverage the perfect of each firms, exploring new methods to innovate and break down limitations for purchasers throughout 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, put money into a variety of cryptocurrencies, and earn curiosity on holdings of bitcoin and British kilos sterling.

The corporate has raised a complete of £17.5 million ($22.eight million) to this point, together with £13.four million from retail traders by the fairness crowdfunding platform Seedrs. It was final valued at £85 million.

It is among 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 trying to function within the nation.

The regulator recently extended a deadline for companies to make the reduce after quite a few firms withdrew their functions.

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

“As a part of Robinhood, we’ll supercharge Robinhood’s enlargement throughout Europe and produce higher entry to crypto and its advantages to hundreds of thousands extra clients,” Hipperson mentioned.