The US-based digital trading platform Robinhood has announced the reviving of its plans to expand its services to European markets, beginning with a rollout in the United Kingdom.
The company’s U.K. launch is planned for the first half of 2021 and will include a full suite of products, including stocks, options, and Exchange Traded Funds (ETFs). On top of these services, Robinhood will also be able to offer crypto trading through its acquisition of Ziglu, a crypto-banking startup founded in 2018.
This move marks an important development not just for Robinhood but for crypto as a whole as it further solidifies cryptocurrencies into mainstream trading products.
In this article, we will look at how Robinhood’s expansion into the U.K. market could impact cryptocurrency trading and what implications this has for investors.
Robinhood Revives Plans to Launch in the UK With Deal to Buy Crypto App Ziglu
Robinhood, an online stock and crypto trading platform, recently announced its plans for expansion into the U.K. market, which will be facilitated by its acquisition of the crypto app Ziglu.
With this move, Robinhood’s customers will benefit from a larger range of crypto trading options and insights.
In this article, we will look into what Robinhood and Ziglu each bring to the table.
Overview of Robinhood
Robinhood is an American financial brokerage firm with headquarters in Menlo Park, California. Founded in 2013 by Vladimir Tenev and Baiju Bhatt, Robinhood offers commission-free trading of stocks, exchange-traded funds (ETFs), options, and cryptocurrency through its mobile app. In April 2020, the company launched a web version of the app.
Robinhood’s mission is to democratize finance for all and empower our customers to participate in markets previously unavailable. The founders aimed to make investment accessible, fair, and fun for everyone. Robinhood provides a secure platform that caters to first-time investors as well as experienced traders and currently has over 10 million registered users.
In August 2020, Robinhood announced a deal to purchase UK-based crypto banking app Ziglu for an undisclosed amount, paving the way for the company’s expansion into the U.K. market. Ziglu provides users with cryptocurrency storage and payment services, such as buying digital currencies like Bitcoin with their credit or debit cards. The acquisition will help Robinhood expand its offerings into the European market while continuing to offer their no-commission buying and trading of 11 cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). This will enable customers on both sides of the Atlantic to access Robinhood’s commission-free trading services.
Robinhood, an online stock and crypto trading platform, recently announced its plans for expansion into the U.K. market, which will be facilitated by its acquisition of the crypto app Ziglu.
Overview of Ziglu
Ziglu is a UK-based digital banking services provider that offers tools to customers to manage their money, cryptocurrencies and pay bills. It allows customers to link their existing bank accounts and use an easy-to-use app to buy and sell cryptocurrencies. Customers will also be able to open a free basic current account, save money across multiple currencies on the app, receive payments in cryptocurrencies as well as pay bills with cryptocurrency.
Ziglu has been designed by experienced people in the finance industry and was founded by Mark Hipperson, who had previously founded Starling Bank. The firm has achieved its Banking as a Service license which allows it to provide customer service regulated under U.K. law.
With its upcoming acquisition of Ziglu, Robinhood is able to gain access into the U.K. cryptocurrency market where it can leverage Ziglu’s technology and customer base to expand its own business operations. The move could potentially help reshape the traditional financial industry while providing more opportunities and options for investors around the world.
Impact of Robinhood’s U.K. Expansion
Robinhood’s recent announcement of their U.K. expansion has sparked a buzz in the crypto market. The deal to buy crypto app Ziglu will allow Robinhood to offer its crypto trading services in the U.K. This is good news for those who want to invest in digital currencies in the U.K. market.
However, just how much of an impact will Robinhood’s entry into the U.K. have? Let’s take a closer look at what this could mean for the crypto market in the U.K.
Increased Competition
The announcement of Robinhood’s plan to expand into the U.K. market by acquiring crypto app Ziglu is expected to cause an influx of new users to the cryptocurrency space. This will lead to increased competition between existing exchanges, resulting in more competitive pricing for traders and investors.
The shift towards trading fees being charged on a percentage basis should also benefit users, as this could provide a much needed incentive for new participants to enter the market. Furthermore, the larger user base will also yield higher liquidity and therefore tighter spreads than what is already seen in the current market. This increased liquidity could arguably lead to a reduction in volatility in the cryptocurrency space and thus making it more accessible and viable option for long-term investments.
Increased Accessibility
The expansion of Robinhood into the U.K. market has the potential to bring a host of benefits to the crypto market. Increased access, industry knowledge and public awareness are just some of the ways that this move could bring more encouragement, support, and innovation to this burgeoning sector.
For starters, greater accessibility to a number of markets will be presented to anyone looking for a platform to buy and trade their favourite cryptocurrencies. The UK-based platform will offer customers access not only to Bitcoin (BTC) and Ethereum (ETH), but also Zcash (ZEC), Dogecoin (DOGE) and others. As much of Europe has recently seen an increase in stablecoins listings, including the U.K.’s most popular stablecoin GBP Coin (GBP), having a trading platform like Robinhood available is an exciting prospect indeed.
In addition, Robinhood’s launch could ultimately boost the public’s trust in the cryptocurrency space – providing education on the various markets available as well as powering better risk management areas with accessible advice. With multi-currency support enabled by Ziglu, it could potentially serve as a bridge between fiat currency accounts held at banks and digital wallets/exchanges containing cryptocurrencies – allowing users far more flexibility when making cross-border payments or exchanging funds from one asset type to another.
Increased Liquidity
With the expansion of Robinhood into the U.K., analysts are expecting an influx of liquidity into the crypto market. This is due to the fact that Robinhood’s app allows traders to diversify and manage their crypto portfolios easily and securely. Additionally, their user-friendly interface can be attractive to new investors, who can benefit from Robinhood’s customer support team and educational materials. With increased availability of resources, investors may be incentivized to take larger trading positions which in turn will increase liquidity leading to better pricing and more favorable conditions for traders.
It should also be noted that Ziglu’s existing customer base may provide a strong foundation for Robinhood’s U.K. expansion plans as Ziglu already has a license from the U.K.
Financial Conduct Authority (FCA) allowing it to operate digital currency services and allowing customers access to both digital currencies as well as traditional services like SEPA payments, debit cards, EUR accounts and much more. This wider range of services provided by Ziglu could offer significant advantages over competitors when it comes to reaching out to new customers in the U.K. Additionally, with current trends hinting at increased demand for digital currencies due to pandemic-driven shift in financial habits might lead more people towards adopting cryptocurrencies leading to even more demand for such cryptocurrency exchanges.
Impact on the Crypto Market
Robinhood’s U.K. expansion is set to have a major effect on the crypto market. The Robinhood app, known for its no-fee stock trading and crypto trading, has announced a deal to acquire Ziglu, a U.K. crypto finance app, in a move to expand its crypto services to the U.K. market. This is great news for both U.K. crypto investors and Robinhood’s U.K. ambitions.
In this article, we’ll explore how Robinhood’s expansion could impact the U.K. crypto market.
Increased Investment
The Robinhood U.K. expansion is expected to bring new investments and liquidity to the crypto market. This is great news for traders because it will mean more sellers and buyers in the market. The increased investment also means that more individuals, businesses, and institutions will have access to these markets, providing a larger pool of potential trading partners. Moreover, Robinhood’s already well-established reputation should help attract experienced traders who may have not previously considered investing in cryptocurrency due to limited options or lack of trust in certain platforms.
By acquiring another well-known crypto app (Ziglu), Robinhood can provide convenient access to both fiat and digital currency services from a single account — something which many current cryptocurrency exchanges cannot offer. This could potentially lead to greater competition of exchanges resulting in improved customer service and better prices for investors in the long run.
Lastly, this move could send out a strong signal that Wall Street is taking back its traditional role as one of the main players in the financial sector by expanding into the crypto space. This could encourage other firms to follow suit, leading to greater legitimacy for cryptocurrencies from financial institutions worldwide — One more major step forward for cryptocurrency mass adoption.
Ziglu is a UK-based digital banking services provider that offers tools to customers to manage their money, cryptocurrencies and pay bills. It allows customers to link their existing bank accounts and use an easy-to-use app to buy and sell cryptocurrencies.
Increased Volatility
The recent announcement that Robinhood is set to expand into the U.K. with its planned acquisition of the crypto app Ziglu has been met with excitement by crypto traders across the world. The digital asset trading platform, which first launched in the U.S., has quickly become one of the most popular among retail investors.
With Robinhood’s entrance into the U.K., there is much anticipation about how this new development will affect prices and volatility within the digital asset space. Increased competition and liquidity from larger entrants in the market such as Robinhood are expected to cause increased volatility in trading activity and pricing. This could lead to sudden price fluctuations as new buyers enter and existing buyers exit with little notice or preparation.
On a positive note, increased activity is expected to bring attention and further adoption of digital assets by institutional investors, driving demand up further and providing greater token liquidity than previously available through smaller exchanges or platforms. In addition, increased liquidity should reduce transaction costs in both buying and selling digital assets compared to their current levels, potentially bringing more investors into this space.
Increased Adoption
The cryptocurrency ecosystem is experiencing a growing adoption as more and more users turn to digital currencies as a safe haven from volatile national currencies, as well a source of speculation and profit. With the cryptocurrency market capitalization skyrocketing, many investors have been driven to join the crypto-world with hopes of making a quick buck.
The popularization and increased reliance on digital currency has made it increasingly attractive to the public, leading to billions of dollars entering into the open crypto market in terms of investments, trade volume and total cryptocurrency value. This influx of capital has led to improved infrastructure for cryptocurrency trading platforms and services such as liquidity solutions, indexing instruments, arbitrage opportunities and more.
The overall result is an intense market competition which drives industry innovation when it comes to trading technology, brokerage services or custodial solutions — all while resulting in better service quality generally. The broader adoption further leads to higher volumes in transactions which could ultimately bring down costs for both buyers and sellers. With an increased recognition among large financial organizations that blockchain technologies are here to stay, this steady growth in adoption should continue into 2020.
Conclusion
In conclusion, any move toward mass-market digital asset investment means more potential to drive increased adoption, wider usage and therefore further growth. In the U.K., Robinhood’s entry into the market will introduce experts and novices alike to new opportunities in crypto trading, paving the way for growth in rapidly advancing markets. With additional features such as the interest in free stocks and ETFs accounts, along with partnerships likely to follow after the takeover of Ziglu announced recently, Robinhood could easily become a popular choice for those who wish to explore digital assets in their portfolios.
This move could give traditional financial institutions a run for their money as more people are likely to flock towards this accessible solution that truly simplifies access to various types of investments. Competition could cause some major changes as well when comparing costs such as commissions or fees that are imposed upon cryptocurrency buyers or sellers. That said, we must wait and see whether Robinhood makes its mark on the U.K. crypto market soon enough or not.
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