Popular Singapore-based cryptocurrency trading platform, Crypto.com has expanded its footprint in the US with a $216 million purchase of two exchanges from financial services firm IG Group Holdings Plc.
The lucrative new partnerships valued in multi-millions between the crypto companies were because of the amount of capital that these firms have raised in the recent past.
According to a statement issued by IG Group’s CEO June Felix, the deal is expected to commence by the first half of 2022 and it "supports IG’s strategic objectives by delivering a significant return on the previous investments made in Nadex and Small Exchange and now sharpening IG’s focus on growing and expanding the U.S. options and futures businesses.”
Co-founder, and chief executive officer of Crypto.com, Kris Marszalek said that the new acquisition deal will not only help the platform expand its reach but also offer existing customers "an entirely new set of financial tools.”
The crypto trading platform acquired North American Derivatives Exchange Inc. (Nadex) and IG’s nearly 40% stake in the Small Exchange Inc.
The acquisition comes within a month of crypto.com’s $700 million record-naming right partnership with Lakers Staple Center. Crypto.com also intended to spend millions to expand its reach and popularity in the US following in the footsteps of the FTX crypto exchange.
According to a Bloomberg report, crypto companies have attracted 520% more capital this year when compared to 2020. The funding in crypto companies has grown from $3.1 billion in 2020 to $21.3 billion in 2021. The growing funding rounds along with a rising number of crypto unicorns indicate a massive shift in institutional interest.
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