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

A lady holds a smartphone with the Robinhood emblem within the background.

Rafael Henrique | Sopa Photographs | Gentle Rocket | Getty Photographs

Robinhood stated Tuesday it has agreed to purchase Ziglu, a London-based fintech app that lets customers commerce bitcoin and a number of other different cryptocurrencies. The acquisition will assist Robinhood broaden into the UK and Europe, the corporate stated.

The announcement comes practically two years after Robinhood halted plans to launch within the UK On the time, the corporate stated it was prioritizing its enterprise at dwelling over worldwide enlargement.

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

The deal might present a vital enhance to Robinhood’s development prospects. Its efficiency has weakened because the GameStop buying and selling frenzy final 12 months.

Robinhood reported a drop in month-to-month energetic customers within the fourth quarter of 2021 — to 17.3 million from 18.9 million within the earlier quarter — and stated 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 market worth since debuting on the Nasdaq final summer time.

Vlad Tenev, Robinhood’s CEO and co-founder, stated 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 corporations, exploring new methods to innovate and break down boundaries for patrons throughout the UK and Europe,” Tenev stated in a weblog submit.

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

Based in 2018, Ziglu lets customers make funds, spend money on 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) so far, together with £13.4 million from retail traders via the fairness crowdfunding platform Seedrs. It was final valued at £85 million.

It is without doubt one of the few crypto companies that has managed to register with the UK’s Monetary Conduct Authority. Registration is a key requirement for digital asset companies trying to function within the nation.

The regulator not too long ago 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 standard set of targets,” he stated.

“As a part of Robinhood, we’ll supercharge Robinhood’s enlargement throughout Europe and convey higher entry to crypto and its advantages to thousands and thousands extra prospects,” Hipperson stated.

Written by trendingatoz

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