Robinhood, the online brokerage giant, has announced the launch of its cryptocurrency trading feature in the European Union on Thursday. This expansion marks Robinhood’s second foray outside of the United States, following its announcement to launch stock trades for U.K. customers by early 2024.
This new crypto product will allow users to buy, sell, and hold over 25 tokens, including popular digital currencies such as bitcoin, ether, ripple, cardano, solana, and polkadot. Additionally, Robinhood aims to offer more tokens in the future as well as the ability to transfer and earn rewards from crypto in 2024.
In an effort to entice EU users, Robinhood is offering the ability to earn free bitcoin for users who trade frequently and refer friends to the app. Users can earn up to one bitcoin based on their monthly trading volume and the number of users they refer.
The move to expand in the EU comes as several major U.S. crypto firms are turning to the European Union for growth after facing challenges from regulators stateside. The U.S. Securities and Exchange Commission has targeted crypto firms with lawsuits alleging violations of securities laws. In contrast, the EU has proposed a comprehensive set of regulations for the crypto industry.
Johann Kerbrat, the general manager for Robinhood Crypto, highlighted the EU’s comprehensive policy for crypto asset regulation as a reason for choosing the region as the company’s first international target market for its crypto product.
Robinhood has also emphasized transparency and security features in its European crypto offering, including transparent display of spreads on trades and the segregation of customer coins from business funds. The company stores customers’ coins in cold wallets disconnected from the internet and has a crime insurance policy in place to protect against theft.
Theft of crypto has been a significant issue in the industry, with several high-profile hacks resulting in millions’ worth of digital coins being lost. To address concerns about the security of customer funds, Robinhood has implemented robust measures to safeguard user assets.
The company’s expansion into the EU signals its commitment to unlocking growth from international markets and provides EU users with access to a wide range of digital currencies through its platform.