Cove Markets, a cross-exchange trading platform, has been acquired by Robinhood, a stock and cryptocurrency trading platform. According to a blog post by Robinhood, the deal is intended to help crypto investors manage their cryptocurrency accounts in a simple and cost-effective manner. Following the acquisition, Cove Markets' top partners, including co-founders Victor Glava and Scott Knudsen, will join the Robinhood crypto team. On public domains, the deal's acquisition price has remained undisclosed. The cross-exchange nature of Cove Markets will help Robinhood bridge the gaps between crypto exchanges.
"Their wealth of experience in trading execution and crypto market infrastructure will help us build more powerful trading capabilities, bringing the benefits of better competition in the crypto markets to our customers," said Christine Brown, Chief Operating Officer of Robinhood Crypto, in a statement.
While Robinhood began offering cryptocurrency-related services alongside its regular commission-free stock trading services in 2018, Cove Markets is only three years old.
Several popular crypto exchanges, including Coinbase Pro, Kraken, Bitfinex, and Bitstamp, can use Cove Markets to facilitate cross-exchange trading options.
Users must first create and fund an account at one or more supported exchanges, open a free account on Cove Markets' platform, and connect exchange API keys before they can begin trading, according to the company's website.
As of now, it's unclear how much Robinhood will use Cove Markets' existing technology and whether it will integrate it into its own platform.
At a time when the cryptocurrency space is booming, several crypto-focused financial service providers are reaching out to each other with partnership offers.