Key Points
- Robinhood now allows crypto deposits and withdrawals for EU customers, offering over 20 digital currencies.
- EU users can self-custody their crypto assets with this new feature.
- Robinhood aims to expand in the EU, supported by favorable crypto regulations and a unified market under MiCA.
- The company recently acquired Bitstamp to further its global reach and institutional investor services.
Robinhood, the U.S.-based retail investing platform, has announced that it will allow European customers to deposit and withdraw cryptocurrencies, marking a significant expansion of its services in the region. This move broadens Robinhood’s European product offering as it focuses on international growth.
In a blog post on Tuesday, the company revealed that users in the European Union (EU) will be able to transfer over 20 digital currencies through its platform, including popular assets like Bitcoin, Ethereum, Solana, and USD Coin. This upgrade allows EU users to “self-custody” their cryptocurrencies, meaning they can move their assets to personal wallets rather than storing them with Robinhood.
This announcement comes nearly a year after Robinhood launched its crypto trading service, Robinhood Crypto, in the EU. While the initial service allowed users to buy and sell cryptocurrencies, it did not provide the option to transfer them off the platform. The new update closes that gap, giving European customers greater flexibility in managing their digital assets.
Johann Kerbrat, general manager of Robinhood’s crypto unit, expressed optimism about the EU’s potential as a growing market for digital currencies. He pointed to the EU’s Markets in Crypto-Assets (MiCA) regulation, which aims to establish a unified regulatory framework for cryptocurrencies across all 27 member states. According to Kerbrat, this harmonized regulatory environment could make the EU an attractive market for crypto firms compared to the U.S.
To further encourage adoption, Robinhood is offering a limited-time promotion: Customers can receive 1% of the value of tokens deposited on its platform back in the form of the equivalent cryptocurrency.
This expansion comes when U.S. crypto firms, including Coinbase, Binance, and Ripple, face regulatory challenges at home. The U.S. Securities and Exchange Commission (SEC) has sued several platforms for allegedly dealing in unregistered securities, a charge these companies dispute. Kerbrat criticized the U.S. regulatory environment as “regulation by enforcement.”
Robinhood’s move into the European market also coincides with its acquisition of Luxembourg-based crypto platform Bitstamp, a deal valued at $200 million. This acquisition is expected to help Robinhood expand globally and provide access to more institutional investors through Bitstamp’s “crypto-as-a-service” offering. Robinhood’s crypto services are available only to EU customers, though the company launched stock trading services in the U.K. in late 2022.
