On Tuesday, retail investing platform Robinhood announced a significant expansion for its European customers. The company will now allow users in the European Union to transfer cryptocurrencies in and out of its app. This move broadens Robinhood’s product capabilities as it pursues international growth.
Robinhood stated that customers can deposit and withdraw over 20 digital currencies through their platform, including Bitcoin, Ethereum, Solana, and USD Coin. This update can also enable European users to ‘self-custody’ their assets. This means that instead of being bound to a third-party platform, users can completely control their cryptocurrencies in a personal wallet.
Robinhood Offers 1% Back on Deposited Tokens for European Customers
In December of the previous year, Robinhood introduced Robinhood Crypto, its EU-based cryptocurrency trading division. Initially, users could only trade cryptocurrencies and not transfer them to other platforms or self-hosted wallets. This new feature is a big change in the service being offered.
Johann Kerbrat, the general manager of Robinhood’s crypto division, remains bullish on the EU market. He supposes the region may grow into an appealing environment for digital currencies because of friendly regulations. Kerbrat used the EU’s Markets in Crypto-Assets (MiCA) regulation. It seeks to provide harmonised laws for the crypto sector in all the 27 member states of the EU. This regulation will establish a coherent framework across the EU when it is effectively adopted.
Moreover, with these features, Robinhood has introduced a limited-time promotion for its users and traders. This is for European customers who can get back 1% of the value of the deposited tokens in the same digital currency.
On the other hand, Robinhood is diversifying its service offerings as US crypto companies grapple with regulation. The Securities and Exchange Commission (SEC) has sued multiple companies, including Coinbase and Binance, for the allegations of engaging in securities without registration. Kerbrat complained about the US regulation system, which he characterised as “regulation by fine.”
In June this year, Robinhood revealed its plans to acquire Bitstamp, the Luxembourg-based cryptocurrency exchange, for about $200 million. This deal aims to enhance Robinhood’s global reach and diversify its crypto services. Bitstamp holds over 50 licenses worldwide, including in Singapore and the EU, positioning Robinhood for further expansion. At the moment, Robinhood’s crypto services are only available in the EU, whereas the stock trading service was introduced in the U.K. in November last year.
