Robinhood, the popular US stock and crypto trading app, has announced it has signed an agreement to acquire UK fintech app Ziglu, an electronic money institution that allows users to buy and sell 11 different cryptocurrencies and make payments in the able to work abroad. This is Robinhood’s second major foray into the UK market, after abandoning a market expansion plan in July 2020. The push also comes just two weeks after the company expanded crypto wallet services to more than two million U.S. customers.
“We signed an agreement to join Robinhood and we couldn’t be more excited,” Ziglu told customers in a message from The Block. “Ziglu and Robinhood share common DNA and work to lower the barriers to entry for a new generation of investors, and we look forward to pursuing this mission together.”
The company added: “[t]his agreement is subject to regulatory approval, so nothing will change for now.”
“As we look to expand internationally, we are pleased to announce that, subject to regulatory approvals and other customary closing conditions, we have signed an agreement to acquire Ziglu Limited, a UK-based e-money institution and crypto-asset company have,” Robinhood said in a statement of its own.
Robinhood says nothing will change for Ziglu customers in the short term, but eventually it will “more fully integrate the UK outfit with Robinhood, take the Robinhood brand overseas and work to expand operations beyond the UK into Europe.”
Vlad Tenev, CEO of Robinhood Markets, says: “Together with the Ziglu team we will work to leverage the best of both companies, exploring new avenues for innovation and breaking down barriers for customers across the UK and Europe.”
It remains to be seen if the latest move can help reverse Robinhood’s downturn, which has seen shares down 40 percent this year and the company has faced a significant slowdown in trading activity from retail investors — in both stocks and cryptocurrencies .