Robinhood is seeking to provide cryptocurrency futures to its clients within the U.S. and Europe, Bloomberg reports.
The buying and selling platform that acquired U.K.-based crypto exchange Bitstamp for $200 million final month is planning to shut the deal subsequent 12 months. The platform hopes to make use of Bitstamp’s licenses to supply perpetual futures for Bitcoin and different tokens in Europe, per the report. This info comes from nameless sources, because the plans haven’t been made public, according to Bloomberg. Robinhood intends to introduce CME-based futures for Bitcoin and Ether within the U.S. Additionally they talked about that there are not any fast plans to launch the providing, and discussions are ongoing, so ultimate plans might change.
In mid-morning buying and selling, Robinhood inventory was down 1.8%, hovering round $22.
A crypto derivatives contract is a tradable monetary instrument whose worth derives from an underlying cryptocurrency asset. It permits merchants to invest on the asset’s value actions with out truly proudly owning it.
Robinhood has at all times been a proponent of cryptocurrency, and it seems that it needs to increase its cryptocurrency choices with out a lot concern for the Wells notice it received from the U.S. Securities and Exchange Commission regarding alleged violations of securities laws.
Furthermore, Robinhood was one of many first platforms to allow Dogecoin trading on its app. Because of this, 62% of its crypto revenue came from Dogecoin in 2021. It launched a cryptocurrency wallet in the identical 12 months that gained reputation amongst buyers.
If Robinhood begins providing crypto derivatives, it will immediately compete with Coinbase, which is already involved in the crypto derivatives business.
