Robinhood
Markets Inc., the popular commission-free trading platform, is making moves in
expanding its cryptocurrency offerings and geographical reach. The company has launched
its services in Hawaii, Puerto Rico, and the US Virgin Islands, while
simultaneously exploring the possibility of introducing cryptocurrency futures
trading in both the United States and Europe.
The
expansion into Hawaii comes on the heels of a regulatory change by the state’s
Department of Commerce and Consumer Affairs, which no longer requires
cryptocurrency services to obtain a money transmitter license to operate in the
state. This move has opened the door for Robinhood to tap into a market
previously known for its strict financial regulations.
Thanks to
this latest update, Robinhood Crypto services are available in every US state except New York. However, the process of obtaining licenses in various
administrative regions of the United States has been lengthy, stretching
over the last six years.
Crypto Futures in the US and
Europe Soon
In a
parallel development, sources familiar with the matter revealed to Bloomberg
that Robinhood is considering offering cryptocurrency futures in the US. and
Europe in the coming months. The company reportedly plans to leverage licenses
from its
recent $200 million acquisition of Bitstamp Ltd., a deal expected to close
in the first half of 2025.
The company increasingly focuses on cryptocurrency services in Europe, having launched a
staking service just under two months ago. Currently, it is based solely on
the Solana token, but it is expected to be expanded to include additional assets
in the future.
If the
plans materialize, Robinhood could offer perpetual futures for Bitcoin and
other digital tokens in Europe, utilizing Bitstamp’s existing licenses. In the US,
the company is eyeing the launch of CME-based futures for Bitcoin and Ethereum.
However, a Robinhood
representative cautioned that these plans are not set in stone, stating,
“We have no imminent plans to launch these offerings.”
The
potential move into crypto derivatives comes at a time when the global market
for such products is booming. Recent data from crypto researcher CCData
indicates that in May, derivatives trading volumes reached $3.69 trillion, surpassing
the $1.58 trillion in spot trading on centralized exchanges.
Despite
receiving a Wells notice from the US Securities and Exchange Commission
earlier this year, Robinhood appears undeterred in its crypto ambitions. The
company has been actively broadening its cryptocurrency strategy, as evidenced
by its Bitstamp acquisition and the recent obtainment of a futures broker
license from Marex.
Robinhood
Markets Inc., the popular commission-free trading platform, is making moves in
expanding its cryptocurrency offerings and geographical reach. The company has launched
its services in Hawaii, Puerto Rico, and the US Virgin Islands, while
simultaneously exploring the possibility of introducing cryptocurrency futures
trading in both the United States and Europe.
The
expansion into Hawaii comes on the heels of a regulatory change by the state’s
Department of Commerce and Consumer Affairs, which no longer requires
cryptocurrency services to obtain a money transmitter license to operate in the
state. This move has opened the door for Robinhood to tap into a market
previously known for its strict financial regulations.
Thanks to
this latest update, Robinhood Crypto services are available in every US state except New York. However, the process of obtaining licenses in various
administrative regions of the United States has been lengthy, stretching
over the last six years.
Crypto Futures in the US and
Europe Soon
In a
parallel development, sources familiar with the matter revealed to Bloomberg
that Robinhood is considering offering cryptocurrency futures in the US. and
Europe in the coming months. The company reportedly plans to leverage licenses
from its
recent $200 million acquisition of Bitstamp Ltd., a deal expected to close
in the first half of 2025.
The company increasingly focuses on cryptocurrency services in Europe, having launched a
staking service just under two months ago. Currently, it is based solely on
the Solana token, but it is expected to be expanded to include additional assets
in the future.
If the
plans materialize, Robinhood could offer perpetual futures for Bitcoin and
other digital tokens in Europe, utilizing Bitstamp’s existing licenses. In the US,
the company is eyeing the launch of CME-based futures for Bitcoin and Ethereum.
However, a Robinhood
representative cautioned that these plans are not set in stone, stating,
“We have no imminent plans to launch these offerings.”
The
potential move into crypto derivatives comes at a time when the global market
for such products is booming. Recent data from crypto researcher CCData
indicates that in May, derivatives trading volumes reached $3.69 trillion, surpassing
the $1.58 trillion in spot trading on centralized exchanges.
Despite
receiving a Wells notice from the US Securities and Exchange Commission
earlier this year, Robinhood appears undeterred in its crypto ambitions. The
company has been actively broadening its cryptocurrency strategy, as evidenced
by its Bitstamp acquisition and the recent obtainment of a futures broker
license from Marex.
