Crypto.com, the popular crypto trading platform is looking to expand its footprint in the US with a $216 million purchase. The crypto trading platform bought two crypto derivatives exchanges from the financial group IG Group Holdings. The deal is expected to commence by the first half of 2022. Kris Marszalek, co-founder, and chief executive officer of Crypto.com said the new acquisition deal will not only help the platform expand its reach but also offer existing customers additional tools. He said,
The acquisition “will give our customers access to an entirely new set of financial tools,”
Crypto.com acquired North American Derivatives Exchange Inc. (Nadex) and IG’s nearly 40% stake in the Small Exchange Inc. for $216 million in cash.
“This deal 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,” said June Felix, IG Group’s CEO, in the statement.
The acquisition of two new crypto derivative platforms comes within a month of crypto.com’s $700 million record naming right partnership with Lakers Staple Center. The crypto trading platform is spending millions to expand its reach and popularity in the US following in the footsteps of the FTX crypto exchange.
Crypto Platfroms Saw 520% Growth in Funding From Last Year
The main reason for crypto companies to build such lucrative new partnerships valued in multi-millions is because of the amount of capital that these firms have raised in the recent past. 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.
Another thing to note here is that for the first time in the last four years, venture capital firms have invested more money in US-based crypto startups than in Asia.