Key Takeaways:
- Crypto.Com to buy NADEX and the small exchange from UK’s IG Group.
- The exchanges were purchased for $216 million from the online trading platform IG Group, with the acquisition expected to be completed by Q2 2022 following a regulatory review.
Cryptocurrency platform Crypto.com is expanding its product offerings following the announcement of sale and purchase agreements with North American Derivatives Exchange (Nadex) and the Small Exchange. The acquisition of the two exchanges will allow Crypto.com to offer trading of “certain derivatives and futures products” to customers in the United States, as well as expand its current product offerings.
The exchanges were purchased for $216 million from the online trading platform IG Group, with the acquisition expected to be completed by Q2 2022 following a regulatory review. After that, both exchanges will operate under the Crypto.com brand.
Kris Marszalek, co-founder, and CEO of Crypto.com says that
“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.”
Nadex and the Small Exchange, both based in Chicago, offer retail investors derivative products. At the same time, Nadex is known for its future offerings, allowing Crypto.com to provide traditional instruments to its US customers.
According to the announcement, Nadex, which the Commodity Futures Trading Commission regulates, offers binary options, call spreads, and Touch Bracket (“knock-out”) contracts. On the other hand, the Small Exchange provides smaller, more capital-efficient future products to attract first-timers. Travis McGhee and Donald Roberts will remain CEOs of Nadex and the Small Exchange, respectively.
The acquisition adds to Crypto.com’s spending spree to establish a presence in the United States. The company recently made headlines when it announced a $700 million deal with AEG to purchase the naming rights to the Staples Center, home of the NBA’s Los Angeles Clippers and Los Angeles Lakers, for the next 20 years.
Crypto.com is also working to improve the efficiency of its fiat deposit and withdrawal processes. Following its integration with Circle API to enable US dollar bank transfers to Circle-based USD Coin (USDC) wallets, the exchange has partnered with state-chartered Silvergate Bank to allow dollar deposits and withdrawals for institutional clients.
