Robinhood is planning to offer cryptocurrency futures to its customers in the U.S. and Europe. The trading platform aims to utilize Bitstamp’s licenses to offer perpetual futures for Bitcoin and other tokens in Europe and intends to introduce CME-based futures for Bitcoin and Ether in the U.S.
Robinhood acquired Bitstamp for $200 million last month and plans to close the deal next year. There are no immediate plans to launch the futures offering, as discussions are ongoing and final plans could change. Robinhood aims to offer cryptocurrency futures in both the U.S. and Europe, leveraging Bitstamp’s licenses for the European market.
Robinhood has been a strong advocate of cryptocurrency and is looking to expand its cryptocurrency offerings despite regulatory challenges, including a Wells notice from the U.S. Securities and Exchange Commission regarding alleged securities law violations. By offering crypto derivatives, Robinhood seeks to compete directly with Coinbase, which is already active in the crypto derivatives market.
Robinhood plans to use Bitstamp’s licenses to offer perpetual futures in Europe and introduce CME-based futures for Bitcoin and Ether in the U.S. A crypto derivatives contract is a financial instrument that allows traders to speculate on the price movements of underlying cryptocurrency assets without owning them.
Robinhood has a history of embracing cryptocurrency, being one of the first platforms to allow Dogecoin trading, which contributed to 62% of its crypto revenue in 2021. The platform also launched a popular cryptocurrency wallet the same year. Robinhood’s stock was down 1.8%, hovering around $22 in mid-morning trading following the news.
If Robinhood begins offering crypto derivatives, it will compete directly with established players like Coinbase. This move is part of Robinhood’s broader strategy to expand its cryptocurrency services and attract more investors to its platform.
While the plans are not yet public and still under discussion, Robinhood’s entry into the crypto derivatives market could significantly impact its positioning in the financial technology sector and the broader cryptocurrency market.
