DrawBridge Lending delivers opportunities in crypto investing and lending via a markets and credit-based approach. Blue Fire Capital is a privately owned company, which works on providing liquidity in numerous asset classes throughout global financial exchanges. Both companies are Chicago-based and are among the first to use institutional expertise from traditional lending products and futures in the direction of cryptocurrency derivatives.
According to the announcement, the acquisition will bring several benefits to all involved parties, especially for Galaxy Digital Trading (GDT). GDT is one of Galaxy Digital’s four business lines, which manages a 24-hour worldwide OTC trading operation.
Galaxy Digital Trading’s trading volume is expected to increase, with the exchange introducing derivatives and futures trading, on-exchange market making, lending, and borrowing products. As a result of the acquisition, DrawBridge will extend its activities via GDT’s institutional market relationships. On the other hand, Blue Fire Capital will continue its operations as a wholly-owned subsidiary while using Galaxy Digital’s sources of liquidity.
Christopher Ferraro, President of Galaxy Digital, believes that the acquisition of the two companies will help Galaxy Digital not only in growing its portfolio of trading products and services, but also to strengthen its positions as a go-to trading desk for digital assets.
2020 has been a good year for institutional recognition of cryptocurrency, with Galaxy Digital Trading reporting an increase in demand for products and services related to crypto assets. Founder and CEO of Galaxy Digital, Mike Novogratz, confirmed this by mentioning that, according to him, institutional investors and corporations start to appreciate and are getting more comfortable with digital assets.