Popular stock and crypto trading platform Robinhood has recently acquired a cross-exchange trading platform, Cove Markets. With this acquisition, the platform plans to add cross-exchange trading functionality to its platform.
As a result of this acquisition, co-founders of Cove Markets, Victor Glava and Scott Knudsen, will join the Robinhood crypto team. Other than that, the top partners will also join the Robinhood crypto team.
Moreover, with the help of Cove Markets, Robinhood can bridge the gaps between crypto exchanges. Chief Operating Officer of Robinhood, Christine Brown, said in a statement :
“Their wealth of experience in trading execution and crypto market infrastructure will help us to build more powerful trading capabilities, bringing the benefits of better competition in the crypto markets to our customers.”
Looking at the platforms, Robinhood has started to offer crypto services since 2018. On the other hand, Cove Markets began its operations in 2019.
Currently, Cove Markets facilitate cross-exchange trading options for several popular crypto exchanges. These include Coinbase Pro, Kraken, Bitfinex, and Bitstamp, among others.
A user has to create and fund an account at one or more supported exchanges to use Cove Markets. Following that, they’ve to create an account on their platform and connect exchange API keys.
As of now, it remains a mystery whether Robinhood uses Cove Markets’ existing technology or not. Moreover, we’ll have to wait and see if they will introduce it to their platform.