Global crypto exchange Crypto.com seeks to strengthen its foothold in the United States with the acquisition of IG Group’s interests in two exchange platforms.
Crypto.com announced that it is buying the US-regulated North American Derivatives Exchange (Nadex) and the Small Exchange for a reported $ 216 million. The deal is expected to close in the first half of 2022, following regulatory approval.
Both based in Chicago, Nadex offers retail investors derivative products, while the Small Exchange is known for its futures offering, allowing Crypto.com to provide traditional instruments to its US customers. Crypto.com co-founder and CEO Kris Marszalek said the goal is to provide customers with a trusted, secure and regulated platform to achieve financial independence.
Regulated by the Commodity Futures Trading Commission (CFTC), Nadex offers binary options, call spreads and Touch Bracket (“knock-out”) contracts, according to the announcement. The Small Exchange, on the other hand, provides futures products that are smaller, more capital efficient in a bid to attract first-timers.
According to the announcement, Travis McGhee and Donald Roberts will continue in their roles as CEOs of Nadex and the Small Exchange, respectively.
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The purchase adds to Crypto.com’s spending to make a name in the US. for 20 years.
Crypto.com is also working on streamlining its fiat deposit and withdrawal processes. Following its integration with Circle API to enable U.S. dollar banking transactions to Circle-based USD Coin (USDC) wallets, the exchange has partnered with state-chartered Silvergate Bank to allow dollar deposits and withdrawals for its institutional clients.