Robinhood Markets has completed its $250 million acquisition of Toronto-based digital asset services firm WonderFi Technologies, marking the company's strategic entry into the Canadian cryptocurrency market. The deal, which was first announced in May 2025, was completed this week following approval from the Canadian Investment Regulatory Organization (CIRO). The transaction brings Canadian crypto exchanges Bitbuy and Coinsquare into Robinhood's operations after the stock-based acquisition of the Toronto-headquartered company. According to Financial Post, the deal was initially announced almost a year ago and represents a relatively small acquisition given Robinhood's market cap of around US$78 billion, which is larger than most Canadian companies. The acquisition comes as Robinhood has already established a presence in Canada since 2024, when it opened an engineering division and Canadian headquarters in Toronto with approximately 240 employees.
As reported by Financial Post, customers using WonderFi's Canadian crypto platforms Bitbuy and Coinsquare will be invited to continue on the Robinhood app in the coming weeks. The Robinhood app will be generally available on app stores in the coming weeks, though the immediate priority is the onboarding of existing customers. According to The Block, WonderFi operates these two platforms, which are among Canada's regulated crypto services and generated a combined $49.8 million in revenue during 2025. Customers will be unlocking access to the Robinhood ecosystem, including lower costs with a transparent, flat 0.5% fee per Canadian trade, and a best-in-class user interface. The integration allows Robinhood to expand its reach and user base in Canada's growing cryptocurrency market, with the company also framing the acquisition as a way to expand its ability to offer programmable finance products.
According to The Block, the acquisition adds 300,000 customers to Robinhood's international customer base, bringing the total to more than 1 million funded customers outside of the U.S.. Robinhood noted it will continue to support WonderFi's partnerships with local institutions, which is expected to further expand Robinhood's institutional business, built through the acquisition of Bitstamp last year. The deal follows months of regulatory approvals, with WonderFi shareholders having already approved the arrangement in July 2025, while the Supreme Court of British Columbia later issued a final court order supporting the transaction. WonderFi shares will be delisted from the Toronto Stock Exchange on Tuesday, marking the completion of the transaction. Robinhood said WonderFi's employees, including its leadership team, will remain with the business after the acquisition closes, providing an established regulatory footprint in Canada as it continues expanding its international crypto operations.
As reported by The Block, Robinhood (HOOD) fell 3.8% on Monday to close at $90.73. The Nasdaq-listed U.S. retail trading platform is down 21.3% year-to-date. The stock decline occurred on the same day as the acquisition announcement, reflecting market reaction to the deal completion and the company's strategic expansion into the Canadian cryptocurrency market. The Canadian expansion arrives during a period of weaker crypto revenue for Robinhood, which reported $134 million in crypto revenue for the first quarter of 2026, down from $252 million a year earlier. However, Robinhood reported total net revenue of $1.07 billion in the first quarter, up 15% from the previous year. The acquisition also comes shortly after the departure of Robinhood Crypto chief operating officer Tanya Denisova, who left the company after more than five years in the role.
The acquisition represents Robinhood's latest international crypto expansion, with the company first announcing plans to acquire WonderFi in May 2025 through a transaction valued at approximately C$250 million. At the time, analysts covering the deal said the acquisition could contribute up to 10% to Robinhood's revenue. According to Financial Post, Robinhood is expanding its services in Canada at a time when the Canadian government is looking to encourage more competition in the financial sector by introducing measures to encourage alternative financial institutions such as fintechs to grow. For now, Robinhood hasn't announced any plans to expand beyond cryptocurrency services in Canada, though the company that built its reputation by offering low-cost trading options could potentially compete with alternative financial services such as Wealthsimple Inc. and the investing divisions of major banks. The company has also continued investing in blockchain infrastructure, launching an Ethereum layer-2 network on a public testnet in February and planning a mainnet rollout later this year.
