Robinhood goes global with Ziglu buy

Robinhood is better known for its stock-trading roots within the U.S. Outside the U.S., it may soon be better known as a crypto business.

Driving the news: Robinhood on Tuesday announced it will acquire Ziglu, a U.K.-based crypto startup, for an undisclosed amount.

Why it matters: Robinhood is leaning on crypto to expand abroad and reignite growth. Today's deal marks the company's first major move as part of that strategy.

Details: Ziglu, which allows consumers to trade crypto and earn yields, holds licenses to operate in the U.K. and Europe.

• With over 60 employees, Ziglu has raised funding from Bigspace Investments and AIV Capital, among others.
• Ziglu CEO and founder Mark Hipperson, who also co-founded Starling Bank, is expected to stay onboard after the deal closes. No financial details were disclosed.
• The deal, completed in cash and stock, valued Ziglu above its last funding round, which was around $110 million, according to a source familiar with the matter.

Context: Showing growth will be of the utmost importance to Robinhood, which has lost a significant amount of shareholder confidence in recent months.

• Shares have fallen 38% since the start of the year as pandemic highs began to wear off and investors to seek either profits or hypergrowth from the company.

Of note: The Robinhood announcement does not say when the deal is expected to close.

• The U.K.'s financial watchdog, the Financial Conduct Authority, is facing heavy backlogs that could muddle the timeline.
• This all comes as the country increasingly focuses on regulating crypto.