Crypto.com, which has recently been in the spotlight for its massive spending, splurging on naming rights for the Los Angeles arena where the Lakers, Clippers and others play, is expanding its presence in another way by acquiring two exchanges from financial services firm IG Group Holdings Plc.
Crypto.com agreed to acquire North American Derivatives Exchange Inc. (Nadex) and IG’s Small Exchange Inc. About 40% of the stake was purchased for $216 million in cash, according to a statement from IG Group. London-based IG Group shares rose 1.8%.
Citadel Securities, Jump Capital, Interactive Brokers Group Inc. and Peak6 Investments recently added cryptocurrency futures to their list of products. Nadex is an American derivatives exchange for products including binary options and call spreads and is regulated by the Commodity Futures Trading Commission.
Kris Marszalek, co-founder and CEO of Crypto.com, said in his own statement that “the proposed acquisition will provide our customers access to a whole new set of financial products.”
This is one of the most important moves we’ve made to date. Once the required regulatory approvals are secured, https://t.co/pFc4PzqqHR will own two DCMs and a DCO, paving the way for launch of derivatives in the US. https://t.co/lpENOJ7myB— Kris | Crypto.com (@Kris_HK) December 1, 2021
The transaction is expected to close in the first half of 2022 subject to conditions including regulatory due diligence, the IG Group said in a statement.
IG Group CEO June Felix said, “This transaction supports IG’s strategic goal of providing a significant return on its previous investments in Nadex and Small Exchange and now strengthens IG’s focus on growth and expansion of its US options and futures business. do.”