(Bloomberg) -- Robinhood Markets Inc. will expand into Asia next year, tapping Singapore as its local base in the region, Chief Executive Officer Vlad Tenev said.
“We plan to be serving customers across Asia soon,” Tenev said Wednesday at the firm’s investor day in New York.
The expansion comes on the heels of the Menlo Park, California-based company entering the UK this year, offering some though not all of its trademark services to those customers.
In the past year, Robinhood has been seeking to expand in international markets, as the financial technology giant hunts for growth beyond its home market where trading activity has waned following a pandemic-induced boom.
Looking ahead, Robinhood “has approval to expand its product offering in the UK and announced plans to open an APAC office in Singapore and acquire brokerage licenses in the region,” Citigroup Inc. analyst Christopher Allen wrote in a note.
Robinhood’s foray into Asia comes at a time when competitors like China’s Tiger Brokers and Futu Holdings Ltd. are expanding internationally, as they continue to shift away from their home market after a regulatory crackdown. That could intensify competition in the industry, which is already struggling with rising costs.
Singapore has emerged as a market of choice for these online brokerages thanks to its status as a global wealth hub, as well as its stable rule of law and an efficient government.
Tenev also said the retail brokerage will expand its contracts offerings linked to specific events — potentially even to sports competitions — building on the firm’s success with those tied to this year’s US presidential race.
Robinhood shares climbed 3.5% in New York on Wednesday. They’ve more than tripled this year.
--With assistance from John Cheng.
(Updates with more details.)
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