The company said that Ziglu’s team of experienced financial services and crypto experts will help accelerate their global expansion efforts.
Ziglu, founded in 2014, allows retail investors to buy cryptocurrencies.
Robinhood did not say how much it was paying for Ziglu. The group, which was valued at GBP 85 million in 2021 when it raised GBP 7 million, said its customer base grew fourfold as investor enthusiasm for crypto exploded and the sector attracted more investment from mainstream financial companies.
The acquisition by Robinhood comes just over two months after the brokerage warned that the pandemic-driven retail trading boom was cooling. Shares in Robinhood have fallen more than 30% in 2022.
The Ziglu purchase also hands Robinhood one of the few crypto groups to have won approval from the UK’s financial regulator. Ziglu is the third UK crypto company with Financial Conduct Authority (FCA) approval to draw the interest of a potential buyer in 2022.
Robinhood said it eventually planned to integrate Ziglu and expand its operations into Europe. The deal is the first time the US brokerage has targeted the UK since it abandoned a plan to expand into the market in July 2020.
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