TLDR:
- Robinhood is buying Canadian crypto firm WonderFi for C$250 million ($178.98 million) in an all-cash deal
- The purchase values WonderFi at a 41% premium to its previous closing price
- Robinhood is developing a blockchain-based program for European traders to access U.S. financial assets and crypto trading
- The company previously acquired Bitstamp for $200 million last year
- HOOD stock has risen 43% this year with a current analyst consensus of “Moderate Buy”
Robinhood Markets is making waves in the crypto space with two major announcements this week. The popular trading platform revealed plans to acquire Canadian crypto firm WonderFi for C$250 million ($178.98 million) while also developing a blockchain-based program for European investors.
The WonderFi deal represents a strategic move to expand Robinhood’s international footprint. The all-cash transaction values WonderFi at 36 Canadian cents per share, offering a 41% premium to its previous closing price.
WonderFi brings valuable assets to the table. Its brands include crypto exchanges Bitbuy and Coinsquare. The company processed over C$3.57 billion in crypto trading volumes in the 2024 fiscal year, marking a 28% increase from the previous year.
Johann Kerbrat, Senior Vice President and General Manager of Robinhood Crypto, highlighted WonderFi’s focus on both “beginner and advanced crypto users” as making it an “ideal partner” for their expansion plans.
WonderFi’s stock has dropped 13.6% on the Toronto exchange so far in 2025, giving it a market capitalization of C$163.9 million. Its employees will join Robinhood’s team, which already has more than 140 workers in Canada.
European Expansion Strategy
Beyond North America, Robinhood is setting its sights on Europe. The company announced it’s developing a blockchain-based program that will give European traders access to U.S. financial assets and cryptocurrency trading.
For this initiative, Robinhood is considering leading blockchains such as Ethereum and Solana. The new platform will launch in partnership with an unnamed digital asset firm.
The move comes as tokenization gains momentum in the financial world. Tokenization involves creating digital tokens for traditional assets on the blockchain, which improves data security while enabling faster transactions and increased liquidity.
Some analysts predict this market could reach $23 trillion by 2033, showing the potential Robinhood sees in this space.
Robinhood CEO Vlad Tenev has been vocal about regulatory challenges. In January, he criticized U.S. regulations for lacking a clear framework and rules for registering security tokens.
Tenev has expressed his vision to use tokenization to open private-market investment opportunities to individual retail investors, potentially democratizing access to previously exclusive investment options.
Pattern of Crypto Acquisition
The WonderFi purchase continues Robinhood’s pattern of crypto-focused acquisitions. Last year, the company acquired cryptocurrency exchange Bitstamp for $200 million in cash, the largest deal in its history.
This string of purchases puts Robinhood in direct competition with crypto heavyweights like Binance and Coinbase Global. The crypto industry as a whole has seen multiple high-profile mergers in 2025, including Coinbase’s $2.9 billion purchase of Deribit and Ripple’s $1.25 billion acquisition of prime brokerage firm Hidden Road.
These moves reflect Robinhood’s evolution beyond its roots as a stock-trading app. The company is working to become a more central part of its customers’ financial planning by expanding its crypto offerings.
Interest in cryptocurrency has surged this year, with Bitcoin prices rising despite economic uncertainty and trade tensions. This contrasts with the benchmark S&P 500 index, which has dipped 0.6% in 2025.
Robinhood’s stock has performed well amid these developments. HOOD shares have risen 43% this year, reflecting investor confidence in the company’s expansion strategy.
Wall Street analysts maintain a “Moderate Buy” rating on HOOD stock, based on 14 Buy and six Hold recommendations issued in the last three months. The average price target sits at $60.94, suggesting a potential 6.1% upside from current levels.
The company’s latest quarter showed 5.09% gains as the market responded positively to news of the WonderFi acquisition.
