Robinhood, the popular cryptocurrency-friendly trading platform, is making significant strides in expanding its services to the United Kingdom. To facilitate this move, the company has appointed Jordan Sinclair, a former executive from Barclays, as the new CEO to oversee its operations in the UK. The appointment was approved by the Financial Conduct Authority (FCA) on July 18.
Jordan Sinclair brings with him a wealth of experience in the financial sector. Prior to joining Robinhood, he served as a managing director at the European fintech firm, Freetrade, for 13 months. Additionally, he held positions such as director of group strategy at Barclays and corporate banker at Wells Fargo, showcasing his expertise in various areas of the financial industry.
Robinhood has been eyeing expansion into the UK for quite some time, with rumors of its plans circulating as early as 2019. However, the launch has faced several delays along the way. In April 2022, the company reignited its UK expansion plans by acquiring the British cryptocurrency firm, Ziglu. Subsequently, in mid-July, local reports indicated that Robinhood had initiated the hiring process for key executives to lead its UK business. The company aims to introduce its services in the UK by the end of 2023.
Robinhood expansion
The timing of Robinhood’s UK entrance is noteworthy, given the ongoing scrutiny of major cryptocurrency firms by US regulators. The US Securities and Exchange Commission (SEC) is actively investigating several cases related to crypto companies, including well-known entities like Coinbase, Ripple, and Binance.US. In this context, Robinhood has also faced action from the SEC this year.
In February, the company received an investigative subpoena from the SEC pertaining to its digital asset business, covering areas such as crypto listings, custody, and platform operations. Furthermore, in June, Robinhood announced its decision to discontinue support for certain coins, including Cardano, Polygon, and Solana, after the SEC classified them as unregistered securities.
Despite regulatory challenges in the US, Robinhood remains a significant player in the cryptocurrency trading space, and its expansion to the UK represents a strategic move to tap into new markets and widen its user base. The UK, being one of the world’s major financial centers, offers a conducive environment for fintech companies, and the demand for cryptocurrency trading services has been steadily increasing in the region.
Robinhood’s acquisition of Ziglu is likely to play a crucial role in its UK venture, as it provides the company with a foothold in the British cryptocurrency market. By incorporating Ziglu’s expertise and local market knowledge, Robinhood can navigate regulatory complexities more effectively and tailor its services to suit UK customers’ preferences.
As Robinhood moves forward with its UK expansion, the company will likely face competition from established players in the region, as well as other fintech firms eyeing similar opportunities. However, with its reputation as a cryptocurrency-friendly platform and a substantial user base in the US, Robinhood possesses valuable assets that could help it gain traction in the UK market.
