Robinhood is set to expand its operations to the Asian market. The online trading giant is now looking to set up shop in Singapore as a base for its operations in the region. According to the firm, it will be introducing crypto products in the region after completing the $200 million takeover bid for the crypto exchange firm, Bitstamp.

The acquisition deal, announced last year, will enable Robinhood to gain access to major regulatory bodies, which paves the way for its expansion in the growing digital market in Singapore.

While Bitstamp boasts a formidable list of licenses all over the world (it holds about 50 licenses), Robinhood is coming into the picture to offer more products. This will make Robinhood compete more favorably with crypto exchange behemoths like Coinbase and Binance.

Robinhood’s Acquisition Of Bitstamp Gives The Firm More Operational Licenses

Apart from its plan to expand its operations in Asia, Robinhood’s acquisition of Bitstamp is an important strategy to secure more operational licenses across several jurisdictions. Last year, Bitstamp was a receipient of an in-principle license from the Monetary Authority of Singapore, positioning the company to gain a full license as a payment institution.

With the new license, the firm can now legally provide digital token services in the country, which aligns with its growth and expansion ambitions across other regions. Robinhood has established itself as a major online trading platform in the U.S.

However, it has started expanding its operations to other regions. The recent acquisition will enable the firm to expand in Asia, giving Robinhood a smoother entry into the highly regulated financial space in the region.

Robinhood’s Crypto Revenue Pushes Overall Earnings Higher

Vlad Teney, Chief Executive Officer of Robinhood, stated that the firm decided to make Singapore its base to serve more customers in Asia.

He added that the recent development is a major milestone in the platform’s global expansion strategy. Robinhood has already expanded its operation in the UK, as it sets sights on the huge market in the Asian region.

The company has reported a more impressive earnings in the first quarter of 2024, due to its increased revenue in the crypto sector. However, it’s still facing some regulatory issues.

Last week, it claimed that it received a Wells notice from the U.S. SEC regarding tokens traded on its platform. More firms are registering their intent to operate in Singapore, as the country continues to relax its regulations on financial and digital assets. The competition among online brokerage firms could intensify following Robinhood’s entry into the market.