Robinhood buys AI-powered investment research platform Pluto Capital
Robinhood has snapped up investment research platform Pluto Capital for an undisclosed sum, marking the digital trading platform’s second acquisition in less than a month.
Robinhood acquires Pluto Capital for an undisclosed sum
Launched in 2021 from its base in Los Angeles, Pluto operates a free trading platform that, supported by large language models (LLMs) and AI-powered analysis tools, enables users to curate and custom, automated trading strategies that align with their personal appetite for investment risk.
These strategies are then applied in the trading of a range of different cryptocurrencies available through Pluto, including bitcoin, etheruem and polygon, among others.
This primary remit is joined by a Sparks programme which rewards users for undertaking educational initiatives through the platform, a community dividend programme, and a strategy monetisation programme which enables users to earn money by licencing their strategies to other users.
Additionally, Pluto also manages an investment management fund, which it leverages to invest in early-stage companies which promote a focus on digital assets.
The start-up’s purchase is expected to enable Robinhood to provide enhanced data analysis, personalised investment strategies and real-time insights and portfolio optimisation capabilities to traders on its own platform.
As part of the transaction, Pluto founder and CEO, Jacob Sansbury, is to join Robinhood’s team as an “AI technologist” according to his LinkedIn, in an addition the company says will “accelerate our product roadmap and help integrate AI-powered capabilities across the Robinhood platform”.
Mayank Agarwal, VP of engineering at Robinhood, comments that Sansbury and the Pluto team have built “an impressive platform that is highly regarded in the financial services industry”, with the start-up’s AI expertise and “mission-aligned passion to democratise finance” complementing the trading platform’s “effort to bring AI powered tools to our customers”.
The deal comes less than a month after Robinhood announced its acquisition of global cryptocurrency exchange Bitstamp for approximately $200 million, which has expanded its reach into the EU, UK, USA and Asia with the addition of Bitstamp’s 50-plus licenses and registrations
