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Should the acquisition be finalized, Bolt Financial will be in the best position to deploy its resources to help expand the scope of Wyre’s offerings as more people are warming up the embracing digital currencies.
Software company Bolt Financial Inc is on track to acquire blockchain payments startup Wyre Payments Inc in a deal that is projected to be worth $1.5 billion. The report was first broken by The Wall Street Journal which projected the deal according to data from Dealogic as the largest merger in the nascent cryptocurrency industry that does not involve a Special Purpose Acquisition Company (SPAC).
Bolt Financial is a San Francisco-based company that operates as a software development outfit. Notably, the firm designs and develops a cloud-based platform for checkout, payments, and fraud protection. The move to acquire Wyre comes off as its most ambitious way of getting into the fast-growing digital currency ecosystem.
Per the WSJ report, Wyre offers services to exchange national currencies and cryptocurrencies between banks and crypto wallets and also offers cryptocurrency tradings. The close similarity between the two company’s product offerings makes the deal all the more unique. Should the acquisition be finalized, Bolt Financial will be in the best position to deploy its resources to help expand the scope of Wyre’s offerings as more people are warming up the embracing digital currencies.
Bolt Financial and Wyre Deal Complements Industry’s Growth
Mergers and Acquisitions (M&A) in the digital currency ecosystem and the broader fintech industry have been receiving a lot of attention in recent times and the Bolt Financial and Wyre deal comes as a major complement to these events.
As reported earlier by Coinspeaker, Mike Novogratz’s Galaxy Digital Holdings Ltd (TSE: GLXY) announced the acquisition of BitGo, one of the digital currency industry’s institutional digital asset custody, trading, and finance outfits for the sum of $1.2 billion. Additionally, back in October last year, FTX Derivatives Exchange completed the acquisition of LedgerX, a Commodity Futures Trading Commission (CFTC) regulated crypto futures and options exchange and clearinghouse.
The slew of acquisitions that have been recorded in the nascent industry has showcased how well industry leaders are willing to reposition themselves in order to gain the best from the industry. It has been projected that in the next couple of years, more people are going to wade into the crypto industry in search of unique value away from the bureaucracies of the traditional financial services sector.
When this happens, established companies want to obtain the best market share, and the best way to achieve this goal is by taking up ownership of a firm that is promising and offers a relatively revolutionary product that users will like to use in the near future. This is one of the unsaid reasons that has backed the spate of M&A recorded in recent times.