Retail investing platform Robinhood on Tuesday announced that it’s offering customers in Europe the ability to transfer cryptocurrencies in and out of its app, broadening its product capabilities in the region as it presses ahead with international expansion.
In a blog post on Tuesday, the company said that it’ll allow customers in the European Union to deposit and withdraw more than 20 digital currencies through its platform, including bitcoin, ethereum, solana, and USD coin.
The move effectively gives Robinhood’s European users the ability to “self-custody” assets — meaning that, rather than entrusting your cryptocurrency to a third-party platform, you can instead take ownership of it in a fully owned wallet that holds your funds.
In December last year, Robinhood launched its crypto trading service, Robinhood Crypto, in the EU for the first time. The service allowed users to buy and sell cryptocurrencies, but not to move them away from the platform, either to another third-party platform or to their own self-custodial wallet.
Johann Kerbrat, general manager of Robinhood’s crypto unit, told CNBC that he thinks the EU has the potential to become an attractive market for digital currencies, thanks to crypto-friendly regulations being adopted by the bloc.
“The EU can become a very attractive market next year,” Kerbrat said in an interview. He pointed to the EU’s landmark Markets in Crypto-Assets (MiCA), regulation, which sets out harmonized rules for the crypto sector across all 27 of the bloc’s member states.
Once MiCA is fully in place, Kerbrat said, every EU country will fall under the same unified regime.
“In terms of total addressable market, [the EU] is as big as the U.S.,” he told CNBC, adding, “it’s definitely an interesting market for us.”
Robinhood added that, for a limited time, the company will offer European customers the ability to get 1% of the value of tokens deposited on its platform back in the form of the equivalent cryptocurrency they transfer into Robinhood.
Robinhood is rolling out new features in the EU at a time when U.S. crypto firms are sparring with regulators at home. In the U.S., the Securities and Exchange Commission has sued several companies including Coinbase, Binance and Ripple over claims that they’re all dealing in unregistered securities.
Each of the platforms has contested the SEC’s allegations, stipulating that tokens marketed and sold on their platforms don’t quality as securities that should be registered with the agency.
“We are disappointed by the way U.S. regulation is happening, where it’s basically regulation by enforcement,” Kerbret told CNBC. “We are not super happy to see that.”
Robinhood is regulated by the SEC and the Financial Industry Regulatory Authority (FINRA) at a federal level in the U.S. It also holds a BitLicense with New York State Department of Financial Services.
Bitstamp deal
In June, Robinhood announced that it would acquire Luxembourg-based crypto platform Bitstamp to take advantage of the firm’s exchange technology and further expand its reach globally. The deal, which is valued at approximately $200 million in cash, is set to close in the first half of 2025.
Kerbrat said that the company’s deal to buy Bitstamp would help it gain access to even more international markets and obtain coveted regulatory permissions around the world. Bitstamp holds over 50 licenses and registrations globally including in Singapore, the U.K. and the EU.
Beyond expanding globally, the deal with Bitstamp is also expected to help Robinhood diversify its crypto business to serve more institutional investors, Kerbrat told CNBC. For example, Bitstamp offers a “crypto-as-a-service” offering which helps banks and other financial firms launch their own crypto capabilities.
Robinhood’s crypto trading, deposit and withdrawal functionality are currently only available to customers in the European Union, not in the U.K. The company launched its popular stock trading service to Brits in November last year. However, it does not yet currently offer crypto services to U.K. clients.
China’s electric car price war shows little sign of letting up, putting more pressure on companies to survive. Tesla ‘s China sales fell by 15% in May from a year ago, China Passenger Car Association data showed. BYD , in contrast, reported a 14% year-on-year sales increase as it held onto first place in the market by volume, but even it had to announce sharp discounts as sales growth slowed from April’s pace. “We expect additional price competition in the coming weeks as BYD is still lagging behind its sales target,” said a team of analyst led by CLSA analyst Xiao Feng in a report Wednesday. While the analysts still have a high conviction, with an outperform rating on BYD’s Hong Kong-listed shares, they see Geely as the ”best positioned” for investors as it is striking the optimal balance with its internal business structure and competing on vehicle price. CLSA has a price target of 483 Hong Kong dollars ($61.55) on BYD, and a 23 HKD target on Geely, also listed in Hong Kong. That’s upside of nearly 20%, and 28%, respectively, from Friday’s close. Geely is a large conglomerate with electric vehicle brands Galaxy, Zeekr and Lynk and Co., which share some of the same tech and manufacturing systems. “Geely’s Galaxy NEV brand has successfully targeted BYD’s popular models with better specs and lower prices,” Macquarie analysts said in a report Thursday, citing a call with an auto dealer who manages dealerships for BYD, Geely and Xpeng in the relatively affluent Suzhou region near Shanghai. “The expert believes Geely’s success will continue, as it is still ramping up new models to compete with BYD’s entire model line-up,” the report said. The Macquarie analysts have a price target of 22 HKD on Geely and rate the stock outperform. But they like U.S.-listed electric car startup Xpeng even more, with a $24 price target. Xpeng is likely to benefit from near-term market share gains given its advanced driver assist system and upcoming car models, the analysts said. The latest delivery data showed Xpeng delivered more than 30,000 cars in May for a seventh straight month, a rare feat among its immediate peers. The company last month also launched a new car under its lower-priced Mona brand. Among publicly listed new energy vehicle companies, a category that includes battery-only and hybrid-powered cars, Leapmotor and Li Auto have proven relatively stable, each with deliveries of more than 40,000 vehicles in May. Both companies have Hong Kong listings, while Li Auto also trades in New York. “Through a continuously expanding product matrix and cost-effective models, Leapmotor has achieved a stable market share in the Chinese mass EV market and has strong growth potential,” the CLSA analysts said. They have a price target of 72 HKD, or more than 30% upside from Friday’s close. Leapmotor reported a net loss in the first quarter, however, compared with profit in the fourth quarter. But Li Auto maintained profitability in the first quarter, according to results released on May 29. “We still see ample upside as a better-than-feared 1Q should inspire investor conviction about sequential recovery in 2Q,” Morgan Stanley analysts said in a May 29 report. They have a price target of $36, for upside of more than 20% from Thursday’s close. “The management team has found its pace for a steady and solid comeback, underpinning a more material resurgence of volume/margins into 2H25 amid new model launches,” the analysts added. “Li Auto’s premium model lineup can steer clear of the fierce pricing competition in the mass market.” Li Auto is best known for its SUVs that come with a gas tank for extending the battery’s driving range. Prices start around 244,000 yuan ($34,000). Industry giant BYD in contrast now sells some cars at 55,800 yuan, with most models falling in the 100,000 yuan to 200,000 yuan price range. The company also has a high-end sub-brand called Yangwang, which prices cars at well above 1 million yuan. Analysts that still like the stock see potential in BYD’s overseas expansion. The narrative on BYD among European investors “sounds more optimistic,” contrary to more cautious sentiment in China following the automaker’s recent price promotions, JPMorgan’s Nick Lai, head of Asia Pacific auto research said in a report Wednesday. Lai and his team also cited conversations with senior BYD management in London in the last week. “All in all, we retain our long-term positive view on the company and believe the (earnings) contribution from the overseas market and BYD’s premium portfolio will increasingly play an important role,” the JPMorgan analysts said. “We estimate that BYD’s overseas business and premium brands will together contribute over 40% of its vehicle earnings in 2025 (up from 20-25% last year) even though they account for only about 20% of volume.” The analysts rate BYD overweight, with a price target of 600 HKD. However, the risk of a flood of cheap cars into markets such as Europe have prompted tariff increases. In China, official commentary is also sounding the alarm about excessive competition. “We believe an end to the current price war will come down to simple economics,” the Macquarie analysts said, pointing out that production capacity for both electric and traditional vehicles is more than 50 million units, well above the annual wholesale volume of 25 million to 27 million vehicles. “Thus, the market will likely stabilize either via higher demand or right-sized capacity and consolidation,” the analysts said. “We believe this may take at least another three to five years.” — CNBC’s Michael Bloom contributed to this report.
Check out the companies making the biggest moves midday: Petco Health — The retailer slumped 22% after losing 4 cents per share in the fiscal first quarter, twice the 2-cent loss that analysts had estimated, based on FactSet data. Revenue of $1.49 billion missed the Street’s $1.50 billion consensus, while same-store sales dropped 1.3%, worse than the 0.6% decline forecast by analysts. Tesla — The EV maker added more than 6%, a day after plunging 14% as CEO Elon Musk and President Donald Trump publicly feuded . Broadcom — Shares of the chipmaker dipped 2.7% on lackluster free cash flow for the second quarter. Broadcom reported free cash flow of $6.41 billion. Analysts surveyed by FactSet were looking for $6.98 billion. Still, several analysts covering the stock raised their price targets. ABM Industries — Shares fell 11% after the facilities management company reported mixed results for its second quarter. Its adjusted earnings of 86 per share was in line with expectations, while its revenue of $2.11 billion topped the FactSet consensus estimate of $2.06 billion. ABM Industries also reiterated its earnings guidance for the year. Circle Internet Group — The stablecoin company popped 38%, following its Thursday debut on the New York Stock Exchange. Circle soared 168% in its first day of trading . Lululemon — The athleisure company pulled back 20% after its second-quarter outlook missed analyst estimates. CFO Meghan Frank also said on a call that Lululemon plans on taking “strategic price increases, looking item by item across our assortment” to mitigate the impact of higher tariffs. G-III Apparel Group — The apparel company tumbled 15% on much weaker-than-expected earnings guidance for the second quarter. The company sees earnings per share in a range of 2 cents to 12 cents. Analysts had estimated earnings of around 48 cents per share, according to FactSet. DocuSign — The electronic signature stock plunged 19% after the company cut its full-year billings forecast. Billings for the fiscal first quarter also came in lower than expected. Braze — Shares of the customer engagement platforms provider fell 13% on disappointing guidance. Braze guided for second-quarter adjusted earnings of 2 to 3 cents per share. Analysts polled by FactSet called for 9 cents per share. Its first-quarter results beat estimates. Quanex Building Products — The maker of windows and doors and other construction materials soared 18%, the most since September, after earning an adjusted 60 cents per share in its fiscal second quarter versus analysts’ consensus estimate of 47 cents, on revenue of $452 million against the Street’s $439 million, FactSet data showed. Adjusted EBITDA also topped forecasts. Samsara — Shares shed 5% after the software company projected revenue growth to slow. Samsara guided for second-quarter revenue to increase between $371 million and $373 million, up from the $367 million in the first quarter. That would be a slowdown on both a sequential and year-over-year basis. Solaris Energy Infrastructure — The oil and natural gas equipment and service provider rallied 10% after Barclays initiated research coverage with an overweight rating and $42 price target. “Solaris is the leader in distributed power with almost 2 GW of capacity to be added by 2027 with 67% allocated towards data centers on long term contracts,” the bank said.
A sign in German that reads “part of the UBS group” in Basel on May 5, 2025.
Fabrice Coffrini | AFP | Getty Images
The Swiss government on Friday proposed strict new capital rules that would require banking giant UBS to hold an additional $26 billion in core capital, following its 2023 takeover of stricken rival Credit Suisse.
The measures would also mean that UBS will need to fully capitalize its foreign units and carry out fewer share buybacks.
“The rise in the going-concern requirement needs to be met with up to USD 26 billion of CET1 capital, to allow the AT1 bond holdings to be reduced by around USD 8 billion,” the government said in a Friday statement, referring to UBS’ holding of Additional Tier 1 (AT1) bonds.
The Swiss National Bank said it supported the measures from the government as they will “significantly strengthen” UBS’ resilience.
“As well as reducing the likelihood of a large systemically important bank such as UBS getting into financial distress, this measure also increases a bank’s room for manoeuvre to stabilise itself in a crisis through its own efforts. This makes it less likely that UBS has to be bailed out by the government in the event of a crisis,” SNB said in a Friday statement.
‘Too big to fail’
UBS has been battling the specter of tighter capital rules since acquiring the country’s second-largest bank at a cut-price following years of strategic errors, mismanagement and scandals at Credit Suisse.
The shock demise of the banking giant also brought Swiss financial regulator FINMA under fire for its perceived scarce supervision of the bank and the ultimate timing of its intervention.
Swiss regulators argue that UBS must have stronger capital requirements to safeguard the national economy and financial system, given the bank’s balance topped $1.7 trillion in 2023, roughly double the projected Swiss economic output of last year. UBS insists it is not “too big to fail” and that the additional capital requirements — set to drain its cash liquidity — will impact the bank’s competitiveness.
At the heart of the standoff are pressing concerns over UBS’ ability to buffer any prospective losses at its foreign units, where it has, until now, had the duty to back 60% of capital with capital at the parent bank.
Higher capital requirements can whittle down a bank’s balance sheet and credit supply by bolstering a lender’s funding costs and choking off their willingness to lend — as well as waning their appetite for risk. For shareholders, of note will be the potential impact on discretionary funds available for distribution, including dividends, share buybacks and bonus payments.
“While winding down Credit Suisse’s legacy businesses should free up capital and reduce costs for UBS, much of these gains could be absorbed by stricter regulatory demands,” Johann Scholtz, senior equity analyst at Morningstar, said in a note preceding the FINMA announcement.
“Such measures may place UBS’s capital requirements well above those faced by rivals in the United States, putting pressure on returns and reducing prospects for narrowing its long-term valuation gap. Even its long-standing premium rating relative to the European banking sector has recently evaporated.”
The prospect of stringent Swiss capital rules and UBS’ extensive U.S. presence through its core global wealth management division comes as White House trade tariffs already weigh on the bank’s fortunes. In a dramatic twist, the bank lost its crown as continental Europe’s most valuable lender by market capitalization to Spanish giant Santander in mid-April.
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