Crypto.com, the global crypto exchange, is looking to strengthen its foothold in the United States by acquiring IG Group’s stakes in two exchange platforms.
It has been reported that Crypto.com announced that it is purchasing 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.
However, both based in Chicago, Nadex offers retail investors derivative products, while the Small Exchange is known for its future offerings, enabling Crypto.com to provide traditional instruments to its US customers. Crypto.com co-founder and CEO Kris Marszalek said that the goal is to offer customers a trusted, secure and regulated platform to achieve financial independence.
The report said that regulated by the Commodity Futures Trading Commission, Nadex offers binary options, call spreads, and Touch Bracket (“knock-out”) contracts. 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. The acquisition adds to Crypto.com’s spending spree to make a name in the United States.
The company recently made headlines with its $700-million deal with AEG to buy the naming rights of the Staples Center, the home of the NBA’s Los Angeles Clippers and Los Angeles Lakers, for 20 years. Crypto.com is also working on streamlining its fiat deposit and withdrawal processes.
Thus, after its integration with Circle API to enable US dollar bank transfers 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.
Source: Cointelegraph