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There have been a lot of strategic repositionings for digital asset trading firms in the past few years, many of which involve such acquisitions as Crypto.com is just about to complete.
Global digital currency exchange Crypto.com is set to extend its foothold into the American market with two new exchange acquisitions in the country. As the company announced, it has executed a sale and purchases agreement to acquire the North American Derivatives Exchange® (Nadex®) a retail-focused, regulated online exchange and clearinghouse offering derivative products on some of the world’s most heavily traded markets, and the Small Exchange, a futures exchange offering smaller, simpler products also aimed toward retail customers.
As a growth-focused firm, Crypto.com said the purchases will help it extend derivatives and futures offering to its customers in the United States, a move that is ambitious amidst regulatory crackdowns of crypto exchanges. As a Commodity Futures Trading Commission (CFTC) regulated outfit, Nadex offers binary options, call spreads, and Touch Bracket (“knock-out”) contracts, according to the announcement. Crypto.com will seek to help expand the startup’s capabilities in this regard.
“Our goal as a platform is to offer our customers a trusted, secure, and regulated platform with world-class tools to achieve financial independence,” said Kris Marszalek, Co-founder, and CEO of Crypto.com. “This proposed acquisition builds on that promise and will give our customers access to an entirely new set of financial tools to complement our current offering.”
While Crypto.com is a registered exchange outside of the United States, the regulated standing of both Nadex and the Small Exchange will help maintain customer confidence in all aspects. User’s funds are held in segregated accounts in major US banks. The Crypto.com acquisition is billed to close in the first half of 2022 and is still subject to regulatory approval. Per a Bloomberg report, the entire deal is worth about $216 million.
Crypto.com Acquisitions to Function Independently
There have been a lot of strategic repositionings for digital asset trading firms in the past few years, many of which involve such acquisitions as Crypto.com is just about to complete. One defining thing that leaves room for growth is the independence with which the acquired firms are allowed to work with. The same holds true for Nadex and Small Exchange as their respective Chief Executive Officers, Travis McGhee, and Donald Roberts will continue in their roles.
“This is a fantastic deal that is beneficial to all parties. Nadex and the Small Exchange are strong innovative businesses, and we are pleased that Crypto.com has recognized their potential. This will be an exciting time for clients and all those involved in the businesses”, said June Felix, Global CEO, IG Group, the current owner of Nadex and the Small Exchange.
Back in October, Coinspeaker reported that FTX Derivatives Exchange completed the acquisition of Ledger Holdings Inc, the parent company of LedgerX, a CFTC regulated crypto futures and options exchange and clearinghouse. This nature of acquisitions is becoming prominent, showcasing the growing interest amongst global crypto exchanges to take a cut of the American pie.