Jul 04, 2024 12:25
RobinhoodMarkets Inc., the popular commission-free trading platform, is making moves inexpanding its cryptocurrency offerings and geographical reach. The company has launchedits services in Hawaii, Puerto Rico, and the US Virgin Islands, whilesimultaneously exploring the possibility of introducing cryptocurrency futurestrading in both the United States and Europe.
Robinhood Expands CryptoOfferings, Eyes Futures Trading in US and Europe
Theexpansion into Hawaii comes on the heels of a regulatory change by the state'sDepartment of Commerce and Consumer Affairs, which no longer requirescryptocurrency services to obtain a money transmitter license to operate in thestate. This move has opened the door for Robinhood to tap into a marketpreviously known for its strict financial regulations.
Thanks tothis latest update, Robinhood Crypto services are available in every US state except New York. However, the process of obtaining licenses in variousadministrative regions of the United States has been lengthy, stretchingover the last six years.
Crypto trading on Robinhood is now available in Hawaii, Puerto Rico, and the US Virgin Islands pic.twitter.com/rpO4WDoLK3
Robinhood (@RobinhoodApp)
July 2, 2024Crypto Futures in the US andEurope Soon
In aparallel development, sources familiar with the matter revealed to Bloombergthat Robinhood is considering offering cryptocurrency futures in the US. andEurope in the coming months. The company reportedly plans to leverage licensesfrom itsrecent $200 million acquisition of Bitstamp Ltd., a deal expected to closein the first half of 2025.
The company increasingly focuses on cryptocurrency services in Europe, having launched astaking service just under two months ago. Currently, it is based solely onthe Solana token, but it is expected to be expanded to include additional assetsin the future.
Robinhood considering offering crypto futures in US, Europe, Bloomberg reports https://t.co/qgbfe7PzyC pic.twitter.com/QEaiAboIim
Reuters Tech News (@ReutersTech)
July 2, 2024If theplans materialize, Robinhood could offer perpetual futures for Bitcoin andother digital tokens in Europe, utilizing Bitstamp's existing licenses. In the US,the company is eyeing the launch of CME-based futures for Bitcoin and Ethereum.
However, a Robinhoodrepresentative cautioned that these plans are not set in stone, stating,"We have no imminent plans to launch these offerings.
Thepotential move into crypto derivatives comes at a time when the global marketfor such products is booming. Recent data from crypto researcher CCDataindicates that in May, derivatives trading volumes reached $3.69 trillion, surpassingthe $1.58 trillion in spot trading on centralized exchanges.
Despitereceiving a Wells notice from the US Securities and Exchange Commissionearlier this year, Robinhood appears undeterred in its crypto ambitions. Thecompany has been actively broadening its cryptocurrency strategy, as evidencedby its Bitstamp acquisition and the recent obtainment of a futures brokerlicense from Marex.
This article was written by Damian Chmiel at www.financemagnates.com.
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