- Robinhood Crypto has now extended its services to every state in the U.S., along with Puerto Rico and the U.S. Virgin Islands.
- This expansion places Robinhood ahead of its primary competitors, Coinbase and Kraken, in terms of geographical availability across the United States.
- Johann Kerbrat, Robinhood Crypto’s Vice President and General Manager, shared that regulatory changes and new licenses made this expansion possible.
Robinhood Crypto now serves all U.S. states and territories, surpassing Coinbase and Kraken in market reach while aiming for global expansion.
Robinhood Crypto Expands to All 50 States and Territories
Robinhood Crypto, the digital asset arm of the popular trading platform, is now accessible to users in all 50 U.S. states, Puerto Rico, and the U.S. Virgin Islands. This comprehensive coverage enables users across the nation to trade an array of 15 cryptocurrencies, including major assets like Bitcoin, Ethereum, Dogecoin, and Avalanche.
Competitive Edge Over Major Crypto Exchanges
While Coinbase and Kraken are notable contenders in the U.S. crypto exchange market, Robinhood’s latest expansion gives it a unique competitive advantage. With the inclusion of Puerto Rico and the U.S. Virgin Islands, Robinhood now offers broader access to its trading services than these two exchanges. Unlike Coinbase and Kraken, whose volumes are regularly tracked on popular aggregators like CoinGecko and CoinMarketCap, Robinhood opts to disclose its trading volumes through quarterly earnings reports, reflecting a more traditional corporate approach.
Impact of Expansion on Trading Volume
According to its latest quarterly earnings report, Robinhood witnessed $7.1 billion worth of crypto transactions on its platform, a decline from the $10.1 billion reported in April. This drop contrasts with the growth in its equities business, which saw a significant rise from $70.7 billion in April to $86.8 billion in May. The expansion into new states and territories could help bolster its crypto trading volumes in the upcoming quarters.
Regulatory Landscape and Licenses
The expansion into new territories was facilitated by strategic acquisitions of licenses and regulatory adjustments. Johann Kerbrat explained that they obtained a money transmitter license in Puerto Rico and benefited from regulatory easing in Hawaii, where previous restrictions had hindered their operations. The Hawaii Department of Commerce and Consumer Affairs recently announced that crypto firms no longer need a state-issued money transmitter license, which paved the way for Robinhood’s entry. In the U.S. Virgin Islands, the lack of stringent state-level crypto regulations further smoothed Robinhood’s expansion process.
Future International Expansion Plans
Robinhood’s expansion within the U.S. is part of a broader strategy to extend its services internationally. Kerbrat noted that ensuring complete coverage in the U.S. was essential before moving toward the European market. This global expansion aligns with Robinhood’s vision to become a leading player in the international crypto space.
Acquisition of Bitstamp and Future Prospects
Adding to its ambitious growth plans, Robinhood recently acquired the notable crypto exchange Bitstamp for $200 million in cash. The acquisition, expected to finalize by early 2025, reinforces Robinhood’s commitment to scaling its crypto operations. Kerbrat indicated that the integration process would involve various regulatory and procedural steps, projecting a completion timeline for the first half of 2025.
Conclusion
Robinhood Crypto’s expansion to encompass all U.S. states and territories marks a significant milestone, setting it apart from other leading exchanges like Coinbase and Kraken. With strategic regulatory manoeuvres and high-profile acquisitions, Robinhood is well-positioned for future growth both domestically and internationally. This development highlights Robinhood’s commitment to broadening access to crypto trading and strengthening its position in the global market.
