Robinhood Looks Toward Global Expansion As It Acquires UK Crypto App Ziglu

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Robinhood has announced that it has acquired UK-based electronic money institution and crypto asset company Ziglu in a bid to expand its global presence.

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“Our mission to democratize finance for all can only be achieved if we reach people around the world. That’s why we announced earlier this year that we had set aggressive targets to open our crypto platform to customers internationally,” Robinhood said in a blog post.

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The terms of the deal, subject to regulatory approval and other customary closing conditions, were not disclosed in the blog post. Robinhood stock rose 5% on April 19 following the news.

GOBankingRates reached out to Robinhood, who declined to comment due to the revenue quiet period. Robinhood will announce its earnings on April 28.

The announcement comes nearly two years after Robinhood halted plans to launch in the UK. At the time, the company said it was prioritizing its home operations over international expansion, CNBC reported.

The company said that with Ziglu, UK-based customers can buy and sell 11 cryptocurrencies, earn returns from its ‘Boost’ products, pay with a debit card, and move and spend money even abroad, at no cost.

“Ziglu and Robinhood share a common set of goals, working to reduce barriers to entry for a new generation of investors, and we are excited to pursue that mission together,” said Mark Hipperson, founder and CEO of Ziglu, in the post. “As part of Robinhood, we will boost Robinhood’s expansion across Europe and provide millions of customers with better access to crypto and its benefits.”

Robinhood explained in the post that nothing will change for current Ziglu customers anytime soon. In the longer term, the company said it will “more fully integrate Ziglu into Robinhood, take the Robinhood brand overseas and work to expand operations beyond the UK and Europe.”

The acquisition could also help the company diversify. Robinhood’s stock plunged after the company’s fourth-quarter earnings on Jan. 27, setting expectations for a grim first quarter of 2022 as it expected total net income to be less than $340 million — a decrease of 35% compared to the first quarter of 2022. 2021, according to the financial report.

In addition, Robinhood’s monthly active users fell to 17.3 million last quarter, from 18.9 million in the third quarter, according to the filing, while average revenue per user (ARPU) for the quarter also fell 39% to $64. year-over-year, compared to $106 in the fourth quarter of 2020, as GOBankingRates previously reported.

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“The decline was primarily related to lower per-user trading volumes for options and stocks and lower per-user interest income from securities lending due to declines in market rates earned on securities lent, partially offset by higher per-user trading volumes for cryptocurrencies,” read the submission.

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About the author

Yael Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including: Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also served as vice president/senior content writer for major New York City financial firms, including New York Life and MSCI. Yael is now a freelancer and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in journalism from New York University and one in Russian studies from Université Toulouse-Jean Jaurès, France.

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