Robinhood Plants Flag in Toronto as Canada Becomes 'Priority' Market
AI-generated image · Bay Street Wire
Following its WonderFi acquisition, the US brokerage opens a Canadian headquarters to expand its crypto and financial services footprint.
Robinhood Markets is escalating its Canadian expansion with the opening of a new headquarters in downtown Toronto. According to reporting from BetaKit, the company now views Canada as one of its “priority markets” and intends to broaden its offerings beyond its initial cryptocurrency services.
Johann Kerbrat, Robinhood’s senior vice-president and general manager of crypto, told BetaKit that the new office is intended to signal a “long-term investment” and commitment to the region. Kerbrat stated that while the company began with crypto to disrupt the market via better features and lower fees, the ultimate goal is to introduce more financial instruments and use cases so Canadians can eventually manage everything within a single application.
The expansion follows Robinhood’s $250-million CAD acquisition of Toronto-based WonderFi. Through that deal, Robinhood gained access to Coinsquare and Bitbuy, two of the largest regulated crypto exchanges in Canada serving 300,000 customers. While those exchanges remain operational, Robinhood intends to migrate those users to its primary app.
Despite the growth push, BetaKit reports that WonderFi president and CEO Dean Skurka has departed, and Robinhood has reduced its global workforce by 10 percent. The company currently employs over 200 people in Canada, with a new headquarters capable of housing 400 staff.
Robinhood's entry creates immediate competition for crypto exchanges such as Shakepay and Netcoins, as well as US rivals Kraken and Coinbase. BetaKit notes that if Robinhood expands into stock trading and self-directed investing, it will compete directly with major Canadian firms Wealthsimple and Questrade.