Robinhood, an American financial services company, has revealed plans to acquire WonderFi, a prominent Canadian fintech and cryptocurrency platform, for $178.9 million (250 million CAD). The acquisition will involve purchasing WonderFi's shares at $0.26 (0.36 CAD) each.

The deal was announced by Robinhood on May 13, marking a significant move as it ventures into the Canadian cryptocurrency market. The acquisition is expected to be completed in the latter half of 2025, subject to regulatory approvals, court consent, and agreement from WonderFi shareholders.

WonderFi currently oversees assets worth over 2.1 billion CAD and operates two regulated digital asset exchanges in Canada, Bitbuy and Coinsquare. In 2024, the platform achieved a trading volume of 3.57 billion CAD and generated revenue of 62.1 million CAD.

Johann Kerbrat, Robinhood Crypto's SVP and GM, emphasized that WonderFi's diverse range of brands catering to both novice and experienced crypto users aligns well with Robinhood's objectives in Canada. The acquisition aims to enhance Robinhood's presence in the growing Canadian crypto market by utilizing WonderFi's technologies, including crypto trading, staking, and custody services.

Once the acquisition is finalized, WonderFi will operate under Robinhood Crypto while maintaining its current product offerings for Canadian users. The existing WonderFi leadership team, led by President and CEO Dean Skurka, will continue to lead the operations with the support of Robinhood's Canadian workforce.

The news of the acquisition had a positive effect on Robinhood's stock, HOOD, with prices rising by 8.9% to $62.5 at market close and an additional 0.3% to $62.7 in after-hours trading. This move aligns with Robinhood's strategy to expand globally in the cryptocurrency sector, following its agreement to acquire Bitstamp.

Robinhood's expansion efforts are part of the broader trend in the industry, with major players like Coinbase, Ripple, and Kraken making significant acquisitions, signaling a growing consolidation within the financial platforms sector.