Robinhood Expands Canadian Presence with Acquisition of WonderFi

Robinhood Markets, Inc. has something cool in store! They announced their intention to purchase Canadian crypto leader WonderFi Technologies Inc. for CA$250 million ($189 million) in an all cash transaction. The deal, valued at about $178.56 million, is slated to close in the second half of this year. This strategic move is part of Robinhood’s ongoing efforts to expand its footprint in the rapidly growing digital asset market in Canada.

WonderFi, which went public in Canada through a reverse takeover in 2021, operates two regulated crypto platforms: Bitbuy and Coinsquare. These platforms have emerged as the undeniable darlings of Canada’s cryptocurrency industry. Currently, they have more than CA$2.1 billion in assets under custody. Following the acquisition, WonderFi’s team, including CEO Dean Skurka, will integrate into Robinhood Crypto, enhancing its operations in the region.

This acquisition stands on the shoulders of Robinhood’s successful expansionary efforts over the past year, including their high-profile $200 million acquisition of European exchange Bitstamp last year. Robinhood has about 140 people working in Toronto right now. The company’s hiring plans include deepening its staff’s technical knowledge of Canada’s rapidly growing digital asset space.

Vlad Tenev, co-founder and CEO of Robinhood shared just how integral he thinks cryptocurrency is to our evolving financial ecosystem.

“I think crypto is the next in line in a long chain of technology innovations that have changed the underlying infrastructure of the financial system in a positive way.” – Vlad Tenev

Robinhood has made a bold move by acquiring WonderFi. This latest action greatly improves the scope for the firm to succeed as an important actor in the global digital currency space. By integrating WonderFi’s platforms and expertise, Robinhood aims to enhance its offerings and provide users with more robust services in the digital currency space.

With its large customer base and impressive regulatory compliance, WonderFi is well-positioned to succeed. These elements will help position Robinhood competitively as it faces the unique challenges of the Canadian market. Investor interest in digital assets is at an all-time high. Both companies are equally well-positioned to harness these opportunities in this rapidly evolving landscape.