- Robinhood has announced that it has acquired Cove Markets, a cross-exchange trading platform.
- This acquisition will serve as a launchpad for Robinhood’s crypto trading product.
- This move will also make it easier for users to manage their Robinhood accounts.
American financial services firm Robinhood has announced the acquisition of cross-exchange platform Cove Markets. Both the trading companies have confirmed that they intend to boost the volume of order routing and execution on Robinhood with this deal.
Victor Glava and Scott Knudsen, the Co-founders of Cove Markets will now be a part of Robinhood’s crypto arm.
Robinhood said in a statement released on Monday morning that both the companies share a common goal of making investing in cryptocurrencies more streamlined and cost-effective.
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Robinhood eyes opportunities in the cryptocurrency industry
Over the past few years, Robinhood has concentrated most of its efforts toward establishing itself in the crypto space. Just a day before announcing the Cove Markets acquisition, Robinhood announced the partnership with blockchain analytics company Chainalysis.
Christie Brown, Chief Operating Officer, Robinhood Crypto said that the arrival of Scott Knudsen and Victor Glava will significantly improve their crypto trading platform. She further added that their rich experience in the crypto market infrastructure and trading execution will allow them to offer robust trading capabilities.
This is the first acquisition made by Robinhood’s crypto arm and also comes just a few months after its $140 million cash buyout of Say Technologies.
The recent mergers and acquisitions offer a glimpse of Robinhood’s game plan in the crypto market. Robinhood said that it is currently in the process of launching a crypto wallet. It will do so by integrating analytics tools developed by Chainalysis, a top-tier crypto intelligence firm Chainalysis.
At present, Robinhood provides users a much-needed exposure to the price movements of different cryptocurrencies on its brokerage application. However, users cannot withdraw or deposit crypto from the platform.
It seems like things are about to change very soon as Robinhood will now allow users to move their tokens to other crypto exchange platforms such as Kraken and Coinbase.
More about Cove Markets
Cove Markets was founded in 2018. It enables customers to manage their accounts across various exchange platforms.
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Feature Image Source: Robinhood