Crypto.com, which recently made headlines with naming rights deals, is now expanding its footprint in another way: Buying two exchanges from financial services firm IG Group Holdings Plc.
Crypto.com has agreed to acquire North American Derivatives Exchange Inc. (Nadex) and Small Exchange Inc. for $216 million, according to a statement from IG Group.
Small Exchange is headquartered in Chicago, which includes securities firms Citadel, Jump Capital, Interactive Brokers Group Inc. and Peak6 Investments among its investors, which recently added crypto-related futures contracts to the product list.
Nadex is an American derivatives exchange for products including binary options and call spreads (an options arbitrage strategy), and is regulated by the US Commodity Futures Trading Commission. (CFTC).
Kris Marszalek, Crypto.com co-founder and CEO, said in the company’s separate statement that the proposed acquisition “will provide customers with access to a whole new set of financial tools.” .
The cryptocurrency market has exploded over the past year both in terms of price and overall product offerings. Cryptocurrency trading activity has increased as competitors vie for market share. Just in the past few days, Coinbase Global Inc. announced a deal for Israeli security firm Unbound Security and the team from crypto wallet company BRD. In mid-November, Gemini Trust Co. did a $7.1 billion funding round, and in October, Cboe Global Markets Inc. returned to the crypto market by purchasing Eris Digital Holdings LLC.
IG Group said the deal is expected to be completed in the first half of 2022 with conditions including regulatory review.
“This agreement supports IG’s strategic goals by delivering substantial returns on previous investments in Nadex and Small Exchange, and strengthens the focus on growing and expanding the options business and IG futures contracts in the United States,” IG Group CEO June Felix said in the statement.
Crypto.com’s CRO token price is up more than 8% amid the news and is currently trading at $0.74.
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According to Bloomberg
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