Robinhood

Robinhood Exchange is a shorthand for Robinhood’s expanding crypto trading stack, spanning its retail trading app, custody and withdrawals, self-custody tooling, and, since 2025, a regulated global exchange footprint through Bitstamp.

The business sits inside Robinhood Markets, a US-based brokerage best known for commission-free retail investing, and it aims to make spot crypto and adjacent products accessible alongside traditional markets.

Overview

Robinhood’s crypto offering began as a simplified retail on-ramp, but it has broadened into a multi-venue model that includes spot trading, staking in select jurisdictions, derivatives-style products outside the US, and early tokenization experiments in Europe. The acquisition of Bitstamp, one of the longest-running crypto exchanges, materially expanded Robinhood’s licensing reach and introduced a larger institutional-facing component to its crypto strategy.

History and Background

Robinhood was founded in 2013 by Vladimir Tenev and Baiju Bhatt and launched its mobile trading app in 2015. The company later added crypto trading, initially emphasizing ease of use and a small set of assets. Over time, it enabled transfers and withdrawals for supported assets and introduced separate self-custody tooling to serve users who want to interact directly with on-chain applications.

In June 2024, Robinhood announced plans to acquire Bitstamp, and the deal closed on June 2, 2025, with Bitstamp operating as “Bitstamp by Robinhood” in public communications. CryptoSlate covered the closing and the strategic rationale around global licensing and institutional access in this report.

Core Products and Services

• Retail spot crypto trading: In-app buying and selling of supported crypto assets, integrated with Robinhood’s brokerage experience.
• Bitstamp exchange services: A regulated spot exchange business with a long operating history and a meaningful institutional client base, now under Robinhood ownership, as detailed in CryptoSlate’s coverage.
• Staking: Robinhood has expanded staking features, including US availability for ETH and SOL with low minimums, according to CryptoSlate’s report.
• Futures-style products: Robinhood has added futures products such as micro futures in its broader trading suite, including crypto-linked contracts.
• Tokenization initiatives in Europe: Robinhood has discussed tokenized stock offerings and related infrastructure plans, which have also drawn regulatory scrutiny.

Technology and Market Structure

Robinhood’s retail crypto execution model relies on third-party liquidity, which can include market makers and exchange-connected liquidity providers, rather than operating a single centralized order book in every jurisdiction. The Bitstamp acquisition adds a traditional exchange venue to the broader product stack, potentially supporting more direct market access where it is operationally and regulatorily appropriate.

Robinhood has also signaled deeper infrastructure ambitions, including a crypto-heavy roadmap that references a layer-2 blockchain approach and tokenized asset delivery mechanisms, as described in CryptoSlate’s coverage.

Regulatory and Compliance Context

Robinhood’s crypto operations have operated under a shifting US regulatory environment. In 2024, its crypto arm received a Wells Notice, and CryptoSlate later reported that the SEC closed its investigation in February 2025 without pursuing enforcement action in this update. Separately, Robinhood has faced state-level scrutiny over historical practices, including a California settlement discussed in CryptoSlate’s report.

In Europe, tokenized equity products and marketing claims can trigger additional oversight, and CryptoSlate has highlighted how regulators have questioned whether some tokenized stock structures may confuse ownership rights and shareholder entitlements.

Use Cases and Market Position

Robinhood’s primary differentiator in crypto is distribution, it is built into a mainstream retail investing app with a focus on simple UX and low-friction onboarding. Bitstamp adds a global compliance footprint and institutional market connectivity, positioning Robinhood to serve a broader spectrum of users, from casual retail participants to higher-touch trading and custody clients.

Risks and Considerations

• Execution and pricing: Commission-free UX does not eliminate trading costs, users should understand spreads, routing, and how fills are achieved across liquidity sources.
• Regulatory uncertainty: Tokenized equities and derivatives-like products can face rapid rule changes, licensing constraints, or marketing restrictions across jurisdictions.
• Custody trade-offs: Platform custody can simplify usability, while self-custody introduces user-controlled security responsibilities and irreversible transfer risks.
• Integration complexity: Combining a broker-led retail flow with an exchange and institutional stack adds operational and compliance complexity that can affect rollout timelines and product scope.