Prominent financial services firm Robinhood Markets has officially entered Canada after completing its acquisition of WonderFi Technologies. The move gives the popular U.S. trading platform a direct path into one of the world’s fastest-growing markets for self-directed investing.
The $250 million deal closed on Monday, more than a year after it was first announced. The transaction received approval from the Canadian Investment Regulatory Organization in May, allowing Robinhood to move forward with its plans to establish a stronger presence in Canada.
Through the acquisition, the company gains not only regulatory approvals and local expertise but also an established customer base and two well-known crypto brands.
The move comes at a time when the crypto market in Canada has been forecasted to have a value greater than $265 million by 2035, with a CAGR forecasted at around 19.95 percent during the same period.
“Our goal is to become one of the top players in the space,” Johann Kerbrat, Robinhood’s senior vice-president and general manager of crypto, claimed in Media reports.
He said the company sees growing enthusiasm among Canadians who are becoming increasingly engaged with their finances and investments.
Robinhood’s move in tandem with Canadian trading movement
The development comes at a time when there is increased rivalry among platforms catering to self-directed investors. Increasingly more Canadians, especially millennials, are making use of mobile trading applications to buy shares, ETFs, and cryptocurrency, offering a goldmine for fintech companies.
Through the acquisition, Robinhood is able to speed up the process of expanding into Canada and at the same time, competing with local competitors like Wealthsimple and Questrade.
WonderFi brings valuable assets to the table. The company owns two of Canada’s largest regulated crypto trading platforms, Bitbuy and Coinsquare, which together hold around $2 billion in client assets.
Both brands will now become part of Robinhood’s ecosystem, and existing users are expected to gradually transition to the Robinhood platform over the coming weeks.
Terms of the deal
As part of the deal, WonderFi shares are expected to be delisted from the Toronto Stock Exchange. Robinhood’s Canadian launch will initially focus on crypto, giving users access to around 50 digital assets.
The company also plans to introduce staking services shortly after launch, allowing customers to earn rewards on certain crypto holdings.
Pricing could become one of Robinhood’s biggest selling points. The company said it will charge a 0.5 percent fee on Canadian-dollar crypto trades, significantly lower than some competitors. For comparison, Wealthsimple charges up to 2 percent for smaller clients making certain crypto investments, giving Robinhood an opportunity to attract cost-conscious traders.
The acquisition also instantly adds roughly 300,000 Canadian customers to Robinhood’s network. WonderFi’s employees will join Robinhood’s existing Canadian workforce of more than 240 people.
The company established its Canadian headquarters in Toronto in 2024 and has continued to expand locally, hiring talent from institutions such as the University of Waterloo and University of Toronto.
Robingood background
Robinhood rose to global prominence during the 2021 meme-stock boom surrounding GameStop, when millions of retail investors flocked to the platform.
While it still offers traditional investing products, a growing share of its business now comes from newer areas such as cryptocurrencies and prediction markets.
Earlier this year, the company reported a rise in quarterly profit, supported in part by record activity in event contracts, which allow users to speculate on the outcome of real-world events.
For Robinhood, WonderFi’s regulatory credentials were a key factor behind the acquisition. The firm said the company prefers to build on businesses that already have strong relationships with regulators, creating a more stable foundation for future growth.
The deal also marks the end of an important chapter for WonderFi. The company grew rapidly during the crypto boom through a series of acquisitions and mergers, but it also faced mounting losses and investor pressure in recent years.