Robinhood has entered into an agreement to acquire WonderFi, a Canadian crypto platform, for CAD 250 million (approximately USD 179 million). The all-cash deal values WonderFi at 36 Canadian cents per share, a 41% premium over its previous closing price. This acquisition marks a significant step in Robinhood's strategy to expand its global footprint and strengthen its presence in the cryptocurrency market.

The acquisition will provide Robinhood with access to the Canadian market, where WonderFi operates two regulated crypto exchanges, Bitbuy and Coinsquare. These platforms have a combined CAD 2.1 billion in assets under custody and processed C$3.57 billion in crypto trading volume in FY2024, which is 28% higher year-over-year. WonderFi has built a strong presence in Canada, catering to both beginner and advanced crypto users.

Robinhood plans to integrate WonderFi's team and technology to enhance its crypto offerings in Canada. WonderFi will continue to operate its products under Robinhood's umbrella, with its team merging with Robinhood Crypto. This collaboration aims to provide Canadian users with access to a wider range of crypto services, including trading, staking, and custody.

Johann Kerbrat, SVP and GM of Robinhood Crypto, expressed enthusiasm about the acquisition, emphasizing the shared goal of making crypto accessible. Dean Skurka, the president and CEO of WonderFi, also welcomed the deal, highlighting the opportunity to enhance their products further by joining Robinhood. Bobby Halpern, the executive chairman of WonderFi, views the acquisition as a launchpad for Robinhood's expansion in Canada.

This acquisition is part of a broader trend of consolidation in the crypto sector, with companies seeking strategic partnerships and acquisitions to expand their global reach and navigate diverse regulatory landscapes. Robinhood's acquisition of WonderFi follows its previous acquisition of Bitstamp in 2024 and aligns with its vision to become a global leader in retail crypto trading and digital asset management.

The deal is subject to regulatory approvals, court consent, and approval from WonderFi's shareholders and is expected to close in the second half of 2025. Robinhood is financing the deal from its existing cash reserves. Meanwhile, the company is exploring new opportunities in Europe, including the potential launch of a blockchain-based platform for retail investors to trade U.S. stocks, considering networks such as Arbitrum and Solana.

WonderFi's CEO, Dean Skurka, experienced a kidnapping incident last year, where he was held for ransom. This event underscores the dynamic and sometimes challenging environment in which crypto firms operate. The company emerged as a consolidated entity following the absorption of CoinSmart and Coinsquare in 2023.

With this acquisition, Robinhood aims to leverage WonderFi's expertise and technology to provide innovative and user-friendly crypto products in Canada, furthering its mission to democratize finance and expand its global presence.