Crypto is becoming an increasingly important part of Robinhood’s (HOOD) business and, despite receiving a Wells Notice from the U.S. Securities and Exchange Commission (SEC) last month, the trading platform continues to expand its digital assets business, investment bank Architect Partners said in a Friday report.

The expansion is evidenced by the recent agreement to buy crypto exchange Bitstamp, the bank said. Architect notes that crypto accounted for 20% of Robinhood’s total revenue in first-quarter 2024.

“This acquisition instantly expands global reach to ensure participation regardless of U.S. actions,” the report said.

A Wells Notice is a preliminary warning from the SEC informing a company that the regulator has enough information to bring a potential enforcement action against it. Robinhood received a Wells Notice from the SEC on May 4 due to its listing of crypto tokens that the regulator potentially views as unlicensed securities.

The Bitstamp acquisition will also expand Robinhood’s institutional offering, which positions the trading platform as one of the “few publicly traded crypto-influenced companies that will be able to serve institutions as they come into the digital asset space,” the note said.

Bitstamp is a “prime asset due to its long operation history and global licensing reach,” Architect said, adding that Robinhood acquired the crypto exchange at a reasonable price.

Architect notes that the price paid by Robinhood of $200 million in cash is a significant discount to the $500 million valuation that Bitstamp received in the 2018 majority investment.

Read more: Robinhood’s Bitstamp Deal Is Strategic and Brings Added Institutional Exposure: Bernstein