Robinhood Officially Enters Canada After Closing WonderFi Acquisition
Robinhood Markets has accomplished its $180 million acquisition of WonderFi, a Toronto-based supplier of digital asset services and products. With the deal, Robinhood is getting into the Canadian market by buying a longtime operator of regulated crypto exchanges.
As a part of the acquisition, WonderFi’s two regulated crypto buying and selling platforms, Bitbuy and Coinsquare, will turn into a part of the Robinhood model. Canadian prospects shall be invited to make use of the Robinhood app, which gives a flat 0.5% charge per CAD commerce, together with the corporate’s person interface, person expertise, and world infrastructure.
Major Canadian Crypto Push
In its official press launch, Robinhood said it should proceed supporting WonderFi’s present institutional relationships in Canada whereas constructing on the institutional enterprise it has developed by means of Bitstamp. The enlargement is a part of Robinhood’s broader technique to construct an built-in world monetary ecosystem.
Following the acquisition, Robinhood now has greater than 1 million worldwide funded prospects, together with roughly 300,000 funded prospects that got here by means of WonderFi. WonderFi workers will be a part of Robinhood’s present Canadian workforce of greater than 240 workers. Robinhood established its Canadian headquarters in Toronto in 2024 as an engineering hub, citing Canada’s sturdy expertise expertise pool.
In a press release, Johann Kerbrat, SVP and General Manager of Robinhood Crypto & International, mentioned
“WonderFi has intensive expertise working regulated crypto platforms that serve newbie and superior crypto customers alike, making it a great associate to speed up Robinhood’s mission in Canada. We’re happy to have closed our acquisition and stay up for delivering modern, user-centric investing merchandise to Canadian prospects.”
The deal comes months after Robinhood reported a pointy decline in crypto buying and selling exercise through the first quarter. Crypto transaction income fell 47% year-over-year to $134 million, whereas crypto buying and selling quantity dropped 48% to $24 billion. The firm additionally missed analyst expectations for earnings and income, despite the fact that internet revenue elevated 3% to $346 million.
Layer 2 Plans
In February, Robinhood launched the general public testnet for Robinhood Chain, an Ethereum Layer 2 community constructed utilizing Arbitrum expertise. The testnet provides builders early entry to the community forward of a deliberate mainnet launch later this 12 months and permits them to construct and check purposes utilizing commonplace Ethereum instruments.
According to the corporate, a number of infrastructure suppliers, together with Alchemy, Chainlink, LayerZero, and TRM, had already begun integrating with the community.
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