Crypto and payments company Ziglu Ltd acquired by Robinhood Markets ending the U.S. brokerage’s long pause on international expansion
Crypto Adoption Continues
Robinhood has agreed to buy Ziglu, a British digital institution and cryptocurrency startup, subject to regulatory clearances and other closing conditions, according to a joint statement. This is Robinhood’s first foray towards the UK after abandoning intentions to enter the market in the summertime of 2020.
The announcement implied that the pandemic disruption was to blame. However, payment for order flow (PFOF), the contentious mechanism used by Robinhood to charge $0 fees to its consumers, is not permitted in the UK and has been since 2012.
The acquisition will provide Robinhood with a platform that will allow consumers to buy and sell 11 cryptocurrencies. As well as move and spend money internationally, according to a statement released Tuesday by the Menlo Park, California-based startup. The terms were not disclosed. As retail trading in the United States exploded following the onset of the epidemic, Robinhood put its intentions to grow in Europe and Asia on hold.
Ziglu, which was founded in 2018, allows users to make payments, invest in a variety of cryptocurrencies, and receive interest on Bitcoin and British pounds sterling assets. To date, the firm has received £17.6 million ($23 million). Including £13.4 million from individual investors via the equity crowdfunding site Seedrs. It was last appraised at £85 million.
Quotes
Vlad Tenev, CEO and Co-Founder of Robinhood Markets, said: “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.”
Mark Hipperson, Founder and CEO of Ziglu, said: “Ziglu and Robinhood share a common set of goals, working to reduce the barriers to entry for a new generation of investors, and we’re excited to pursue that mission together. 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.”
