Crypto.com, one of the fastest-growing financial and crypto platforms, has announced the acquisition of the American-based North American Derivatives Exchange and Small Exchange as it looks to expand its footprint into the derivatives industry.
Nadex is a US-based, retail focussed derivatives exchange that specializes in complex derivatives products like binary options, call spreads, and touch bracket contracts and provides a safe and secure environment for the traders and investors to trade in this space. Small Exchange, on the other hand, offers simple derivatives products on specific instruments and hence has proven to be very attractive for retail users. Crypto.com plans to open up this trading to its estimated userbase of over 10 million users and it may also soon launch crypto-related derivatives products for its users through these exchanges.
“Our goal as a platform is to offer our customers a trusted, secure, and regulated platform with world-class tools to achieve financial independence,” said Kris Marszalek, co-founder, and CEO of Crypto.com. “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.”
Nadex belongs to the North American unit of the large IG group and is registered and licensed with the CFTC which gives a sense of security for the users of the exchange. Derivatives offerings in the crypto industry are still in their infancy and there is a lot of scope for improvement and degradation in this space. With more sophisticated traders entering into the crypto trading markets, the need for complex derivatives products and risk management tools and options is only going to increase in the future and the acquisition of these two exchanges might have been made by Crypto.com with this in mind.
“This is a fantastic deal that is beneficial to all parties. Nadex and the Small Exchange are strong innovative businesses, and we are pleased that Crypto.com has recognized their potential. This will be an exciting time for clients and all those involved in the businesses”, said June Felix, Global CEO, IG Group.
The formalities surrounding the acquisition are expected to be completed in the first half of 2022 after following all due regulatory reviews. Both the companies would be coming under the Crypto.com brand which should help the company to eye the US and surrounding markets in a big way.