Bitstamp
Bitstamp Ltd. is a cryptocurrency exchange headquartered in London, United Kingdom, founded in 2011 by Slovenian entrepreneurs Nejc Kodrič and Damjan Merlak.[1][2] Originally established in Slovenia as one of the earliest platforms for trading digital assets, it has evolved into a regulated global venue for buying, selling, and storing cryptocurrencies, serving both retail and institutional clients.[3][4] Bitstamp holds over 50 active licenses and registrations across jurisdictions including the European Union, United Kingdom, United States, and Asia, enabling compliant operations in multiple markets.[5] In June 2025, Robinhood Markets completed its $200 million acquisition of the exchange, integrating Bitstamp's infrastructure to expand institutional crypto services and deepen liquidity access.[6][7] This milestone underscores Bitstamp's resilience and value, having operated continuously since inception despite early industry challenges such as the 2015 hack that resulted in the loss of around 19,000 bitcoins, which the firm addressed through insurance recovery and enhanced security measures.[8][3]History
Founding and Early Years (2011–2012)
Bitstamp was founded in August 2011 by Nejc Kodrič and Damijan Merlak, two young Slovenian entrepreneurs, initially operating from a garage in Slovenia with a basic setup consisting of a server, a few computers, and an initial capital of a few thousand euros.[3][9] The exchange launched as a platform for trading bitcoin against euros, addressing a key pain point for European users who faced high fees and delays when using dominant platforms like Mt. Gox, which primarily handled U.S. dollar transactions routed through Japan.[3][10] By enabling seamless SEPA bank transfers, Bitstamp provided a more accessible entry point for Europeans into the nascent bitcoin market, where the cryptocurrency traded at prices ranging from under $5 in late 2011 to around $13 by year's end.[11] During its first full year of operation in 2012, Bitstamp focused on building operational stability and user trust amid bitcoin's volatile early ecosystem, processing over 1 million transactions as the platform gained traction.[12] The exchange maintained continuous uptime from inception, a rarity in an era prone to outages on competitors, and benefited from bitcoin's price surge from approximately $5 to over $1,100 by late 2013, though the bulk of this growth began accelerating in 2012.[9] Trading volume expanded steadily, reaching around 10,000 BTC per day by early 2013, reflecting organic adoption driven by reliable fiat-to-crypto on-ramps rather than aggressive marketing.[13] Kodrič and Merlak handled core development and customer support personally, prioritizing security protocols like manual transaction verification to mitigate risks in an unregulated environment.[10] These foundational years established Bitstamp as one of the earliest euro-denominated bitcoin exchanges, predating many later entrants and operating without major incidents until subsequent expansions.[3] The Slovenian base facilitated low-cost bootstrapping but foreshadowed future relocations for enhanced regulatory compliance.[14]Relocation and Growth Phase (2013–2014)
In April 2013, Bitstamp relocated its registration and established a headquarters in London, United Kingdom, shifting from its Slovenian origins to access a major financial center amid Slovenia's limited infrastructure for cryptocurrency operations.[15][16] This move addressed regulatory and operational challenges in Slovenia, positioning the exchange for expanded European market access.[16] Bitstamp's trading volume grew substantially during this period, reflecting rising bitcoin adoption. On July 22, 2013, it surpassed Mt. Gox—the then-dominant exchange—for the first time, processing 8,294 BTC in daily volume compared to Mt. Gox's 8,215 BTC.[17] By late 2013, Bitstamp ranked among the "Big Three" exchanges (alongside Bitfinex and BTC-e), capturing approximately 30% of total USD/BTC trading volume.[18] Daily bitcoin trading averages reached around 21,574 BTC in 2013, underscoring its emergence as a reliable USD-denominated platform amid competitors' instabilities.[19] To enhance compliance and user trust, Bitstamp mandated identity verification for account holders starting September 2013, requiring passports and official address proofs. In May 2014, the exchange conducted a proof-of-reserves audit by Vinumeris GmbH, verifying full client fund coverage and transparency in bitcoin holdings.[20] A March 2014 audit further confirmed Bitstamp's control over a major bitcoin wallet involved in a record $147 million transfer, bolstering its reputation for security.[21] These measures coincided with sustained volume leadership into early 2014, as bitcoin prices peaked near $755 on January 2 before market corrections.[22]Maturity and Expansion (2015–2023)
In January 2015, Bitstamp experienced a security breach resulting in the theft of approximately 19,000 bitcoins, valued at around $5 million at the time, leading to a temporary suspension of services for nearly a week before reopening with enhanced security protocols, including improved cold storage practices. Despite the incident, the exchange maintained its position as the world's third-largest Bitcoin trading platform that year, handling about 5% of global BTC transactions.[23] To bolster regulatory compliance and operational stability, Bitstamp relocated its European headquarters to Luxembourg in 2016, securing a payment institution license from the country's Ministry of Finance—the first such national license granted to a Bitcoin exchange in the European Union.[24][25] This move facilitated fiat currency processing under stricter oversight and positioned Bitstamp as a pioneer in licensed crypto operations amid growing institutional interest.[26] In October 2018, Bitstamp was acquired by NXMH, a Belgium-based investment firm, providing capital for further infrastructure development while preserving its independent operations.[27] The acquisition supported expansion into additional cryptocurrency pairs and institutional-grade services, such as API integrations for high-volume traders. Throughout the period, Bitstamp navigated multiple market downturns, including the 2018 crypto winter and 2022 bear market, by prioritizing risk management and transparency, earning repeated top AA risk ratings from CCData's Exchange Benchmark—six consecutive by November 2023, the only centralized exchange to achieve this streak.[28] Expansion efforts included launching staking services in 2021 for eligible assets like Ethereum, though U.S. operations ceased in 2023 due to regulatory pressures from the SEC.[29] Bitstamp also introduced lending products, with performance reports indicating steady yields on supported assets through 2023.[30] By this period, the platform had grown its global footprint, registering with U.S. authorities under FinCEN and complying with EU AML directives, while trading volumes and revenue demonstrated consistent upward trends, reaching $95 million annually by early 2024 as a culmination of prior expansions.[31] In August 2020, amid Brexit uncertainties, Bitstamp migrated European client accounts from its UK entity to Luxembourg, further solidifying its EU-centric operations.[32]Acquisition by Robinhood (2024–2025)
On June 6, 2024, Robinhood Markets, Inc. announced an agreement to acquire Bitstamp Ltd., a Luxembourg-based cryptocurrency exchange founded in 2011, for approximately $200 million in cash, subject to customary purchase price adjustments.[33][7] The deal aimed to bolster Robinhood's cryptocurrency operations by integrating Bitstamp's established infrastructure, including licenses for trading and custody across the European Union, United Kingdom, United States, and Asia, thereby extending Robinhood's reach beyond its primarily U.S.-focused retail user base.[34][35] The acquisition required regulatory approvals from multiple jurisdictions due to Bitstamp's international operations and compliance with anti-money laundering standards.[36] Robinhood projected closure in the first half of 2025, pending these clearances and other conditions.[37] Bitstamp continued independent operations during the interim, maintaining its trading volume and user services without reported disruptions tied to the pending deal.[38] The transaction closed on June 2, 2025, marking Robinhood's entry into institutional cryptocurrency services through Bitstamp's existing client base and custody solutions.[39][8] Post-acquisition, Robinhood emphasized synergies such as enhanced global market access and technological integration to support both retail and professional traders, while Bitstamp's leadership transitioned under Robinhood's oversight.[40] No significant financial adjustments to the $200 million valuation were publicly disclosed upon completion.[6]Operations and Services
Trading Platform and Supported Assets
Bitstamp provides a web-based trading platform and a mobile application for cryptocurrency exchange, emphasizing spot trading as its core offering. The platform supports basic and advanced trading modes, with the Pro mode enabling access to real-time charts, order books, and analytical tools for more experienced users.[41] Available order types include market, limit, stop-limit, and trailing stop orders, facilitating precise trade execution without support for margin trading or derivatives like futures contracts.[42] The platform integrates an API for programmatic trading, offering high liquidity and stability for institutional and professional users.[43] Users can deposit and trade using fiat currencies such as EUR, USD, and GBP, alongside various payment methods including bank transfers, debit/credit cards, PayPal, Apple Pay, and Google Pay.[42] [44] As of 2025, Bitstamp supports spot trading for over 100 cryptocurrencies, including major assets like Bitcoin (BTC), Ethereum (ETH), and XRP, paired against fiat and other digital assets.[45] [46] The exchange periodically reviews and delists underperforming tokens, as evidenced by the removal of assets such as DYDX, RLY, NEXO, and others in May 2025 to maintain listing standards.[47] While staking rewards are available for select proof-of-stake assets like ETH, ALGO, and ADA through the separate Bitstamp Earn product, these do not integrate directly with active trading functionalities and are restricted in jurisdictions including the US, UK, Canada, Singapore, and Japan.[48] [42] Trading pairs are accessible via the platform's markets page, covering a range of blue-chip and altcoins, though the exact selection evolves based on regulatory and market evaluations.[49]Custody, Security, and Additional Features
Bitstamp maintains custody of customer assets primarily through a combination of hot and cold wallets, with approximately 95% of digital assets stored offline in cold storage to mitigate hacking risks.[50] The exchange partners with qualified custodians such as BitGo, which provides multi-signature wallets and segregated storage solutions to reduce counterparty risk and ensure capital efficiency.[51] Assets are held in bank-grade custody arrangements, including regulated sub-custodians, with customer funds segregated from operational funds to comply with fiduciary standards.[52] Security protocols at Bitstamp include mandatory two-factor authentication (2FA) for account access, multi-signature requirements for withdrawals, and ongoing monitoring for scams and fraud.[53] Cold storage assets are further protected by insurance policies, including a dedicated crime insurance policy from Lloyd's of London that covers theft from offline wallets, supplementing BitGo's inherent coverage.[50] [54] In 2021, Bitstamp expanded this crime insurance coverage to enhance protection against internal and external threats.[55] Additional features include Bitstamp Earn, which enables users to participate in staking for proof-of-stake (PoS) cryptocurrencies such as Ethereum (ETH) and Cardano (ADA), earning rewards determined by network protocols minus a platform commission (e.g., 15% for ETH).[56] [57] Staked assets remain under Bitstamp's custody, maintain liquidity without slashing penalties for ADA, and support blockchain security through validation processes.[58] The platform also offers crypto lending, allowing users to lend assets for yields up to 4.40% APY, with transparency on borrower credit assessments to manage credit risk.[59] These services are unavailable in certain jurisdictions, including the United States, United Kingdom, Canada, Singapore, and Japan.[42]Fee Structure and User Accessibility
Bitstamp employs a tiered fee structure for trading based on a user's 30-day trailing USD-equivalent volume, distinguishing between maker fees (for orders adding liquidity) and taker fees (for orders removing liquidity). For volumes under $10,000, maker fees are 0.30% and taker fees 0.40%; these decrease progressively to 0.00% maker and 0.03% taker for volumes exceeding $1 billion. [60] FX and stablecoin pairs benefit from an 80% volume reduction in calculations. [60] Deposits of cryptocurrencies are free, as are fiat deposits via SEPA, ACH, Faster Payments, and PayNow; international wire deposits incur 0.05% with a minimum of $7.50 USD/EUR/GBP/SGD and maximum of $300. [60] Withdrawals of cryptocurrencies involve variable network fees plus a processing component disclosed prior to confirmation, while fiat withdrawals via SEPA cost 3.00 EUR, ACH and Faster Payments are free or 2.00 GBP, and international wires 0.1% with a $25 minimum. [60] Additional services like instant purchases carry a 4% fee, and staking rewards are subject to commissions of 15% for ETH and 25% for ADA. [60]| 30-Day Volume (USD) | Maker Fee | Taker Fee |
|---|---|---|
| < $10,000 | 0.30% | 0.40% |
| $10,000 - $100,000 | 0.20% | 0.30% |
| $100,000 - $500,000 | 0.10% | 0.20% |
| $500,000 - $1.5M | 0.08% | 0.18% |
| $1.5M - $5M | 0.06% | 0.16% |
| $5M - $20M | 0.03% | 0.12% |
| $20M - $50M | 0.02% | 0.10% |
| $50M - $100M | 0.01% | 0.08% |
| $100M - $250M | 0.00% | 0.06% |
| $250M - $1B | 0.00% | 0.05% |
| > $1B | 0.00% | 0.03% |