Major cryptocurrency exchange Crypto.com has entered into an agreement with IG Group to acquire its stakes in two U.S.-based exchange platforms, the company said in a blog post on 1 December.
According to the announcement, Crypto.com wishes to acquire both the North American Derivatives Exchange (Nadex) and the Small Exchange, both based in Chicago, and has offered IG Group $216 million for its stakes in the exchanges. While the deal is still waiting for regulatory approval, Crypto.com expects to complete the acquisitions in the first half of 2022. The co-founder and CEO of Crypto.com, Kris Marszalek, said in a statement:
“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.”
Through the acquisition of both exchange platforms, Crypto.com will be able to provide its U.S. customers with access to traditional financial instruments. Nadex offers retail investors derivative products, such as binary options, call spreads, and Touch Bracket contracts. The Small Exchange, on the other hand, is focused on attracting first-time traders by offering them futures offerings that are smaller and more capital efficient.
Once the deal has been completed both companies will fold under the Crypto.com brand, further spreading the exchange’s name in the U.S.. Last month, Crypto.com made headlines after it agreed to buy the naming rights of the Staples Center for 20 years — the home of the Los Angeles Clippers and Los Angeles Lakers — at the tune of $700 million.