Global cryptocurrency exchange Crypto.com is looking to strengthen its U.S. foothold by acquiring IG Group's stake in two exchange platforms.
Crypto.com has announced that it will acquire US-regulated North American Derivatives Exchange (Nadex) and The Small Exchange for $216 million. Subject to regulatory approval, the transaction is expected to close in the first half of 2022.
Both firms are based in Chicago, with Nadex offering derivatives products to retail investors and The Small Exchange known for offering futures products, allowing Crypto.com to offer traditional instruments to its U.S. clients. Crypto.com co-founder and CEO Kris Marszalek said its goal is to provide customers with a trusted, secure and regulated platform to achieve financial independence.
Regulated by the U.S. Commodity Futures Trading Commission (CFTC), Nadex offers binary options, call spreads and Touch Bracket contracts, according to the statement. On the other hand, The Small Exchange offers smaller, more capital-efficient futures products to appeal to newcomers.
Travis McGhee and Donald Roberts will continue as CEOs of Nadex and The Small Exchange, respectively, according to the statement.
The acquisition further fuels the spending spree that has led to Crypto.com's claim to fame in the United States. Most recently, the company made headlines for its $700 million deal with AEG to buy 20-year naming rights to the Staples Center, home of the NBA's Los Angeles Clippers and Los Angeles Lakers.
Crypto.com is also working to simplify the fiat deposit and withdrawal process. After integrating with the Circle API to enable USD bank transfers to Circle-based USDC wallets, the exchange has partnered with state-chartered bank Silvergate Bank to offer USD deposits and withdrawals to its institutional clients.
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