Crypto.com Acquires Two IG Group Exchanges in $216M Deal
Crypto.com has announced yet another big play. The exchange has acquired Nadex and the Small Exchange to give customers access to derivatives and futures products.
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The acquisitions are only the latest in a series of big steps from Crypto.com.
Crypto.com Announces Exchange Acquisitions
After signing a string of major sponsorship deals throughout the year, Crypto.com is now also focusing on acquisitions.
The fast-rising crypto exchange announced it had bought the IG Group’s North American Derivatives Exchange and Small Exchange in a $216 million deal Wednesday. The firm is hoping that the acquisitions will give customers access to a range of derivatives and futures products while expanding reach in the U.S.
Kris Marszalek, the co-founder and CEO of Crypto.com, said of the update:
“Our goal as a platform is to offer our customers a trusted, secure, and regulated platform with world-class tools to achieve financial independence. 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.”
The North American Derivatives Exchange, otherwise known as Nadex, is a FTSE 250 firm with a market cap of around $4.3 billion. It offers instruments like binary options, call spreads, and Touch Bracket contracts. The Small Exchange, meanwhile, specializes in futures. It caters to a variety of market participants including market makers, trading firms, and hedge funds. The acquisition is expected to be finalized in the first half of 2022, and the two companies will be recognized under the Crypto.com banner.
Today’s announcement follows a number of other big moves from Crypto.com. Only yesterday, the firm announced that it had partnered with Silvergate to attract institutional clients. It’s not only the institutional market the firm has turned its attention to, though: its $100 million marketing campaign featuring Matt Damon and $700 million naming rights deal for the LA Lakers’ and LA Kings’ home venue, the Staples Center, suggests that it’s also looking to attract interest from retail investors. Earlier this year, the firm announced partnerships with UFC and Formula One earlier this year. As crypto continues its entry into the mainstream, it seems Crypto.com has its sights set on global expansion.
Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies.
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