Robinhood stock and crypto trading platform has acquired Cove Markets, a cross-exchange trading platform. The deal aims to help crypto investors manage their cryptocurrency accounts in simple and cost-effective ways, Robinhood claimed in a blog post. Following this acquisition, Cove Markets’ top partners will join the Robinhood crypto team, including co-founders Victor Glava and Scott Knudsen. The acquisition amount of the deal remains undisclosed in public domains. The cross-exchange nature of Cove Markets will help Robinhood bridge the gap between crypto exchanges.
“Their wealth of experience in crypto trading execution and infrastructure will help us build more powerful trading capabilities, giving our clients the benefits of increased competition in the crypto markets,” said Christine Brown, Chief Operating Officer of Robinhood Crypto in a statement. comment in the deal.
While Robinhood started offering crypto-related services in 2018 along with its regular commission-free stock trading services, Cove Markets is relatively new at just three years old.
Cove Markets can facilitate cross-exchange trading options for several popular crypto exchanges such as Coinbase Pro, Kraken, Bitfinex, and Bitstamp.
Cove Markets requires users to create and fund an account with one or more supported exchanges, open a free account on the platform, and connect exchange API keys before starting trading, the website explains.
At this point, it remains unclear to what extent Robinhood would leverage Cove Markets’ existing technology and whether it would introduce it on its own platform.
Several crypto-focused financial services firms are turning to each other with partnership offers at a time when the cryptocurrency space is growing.
In October, MasterCard signed a deal with crypto wallet platform Bakkt to enable merchants, fintech companies and banks to accept and extend “a wide range” of solutions and services related to cryptocurrencies to its users.
This month, US-based crypto lending and savings company Nexo teamed up with New York City-based Fidelity Digital Assets (FDA) to bind large-scale institutional investors to enter the cryptocurrency space.