WonderFi merges with Coinsquare and CoinSmart to form regulated crypto asset platformApril 3, 2023
Canadian-based companies WonderFi Technologies Inc, Coinsquare Ltd, and CoinSmart Financial Inc have announced their merger to create Canada’s largest regulated crypto asset trading platform with over 1.65 million registered users.
The newly merged company will offer Canadians a wide range of diversified products and services, including retail and institutional crypto trading, staking products, business-to-business crypto payment processing, sports betting, and gaming. The newly merged company “will have transacted over $17 billion since 2017 and have over $600 million in assets under custody,” the announcement said.
The combined company plans to diversify its revenue potential by expanding its product offerings, which are expected to appeal to a wider range of customers. Upon completion of the merger, the combined company is anticipated to possess roughly $50 million or more in cash and investments and will have no outstanding debt.
“What we will deliver with the combination of both Coinsquare and CoinSmart is a unique platform where users will trade, earn and pay with crypto, invest in equities, and soon, place wagers all in one compliant ecosystem,” WonderFi president and interim CEO Dean Skurka shared.
Related: New Canadian rules for crypto trading platforms leave little room for stablecoins
CoinSmart, a crypto exchange founded in 2018, was acquired by Coinsquare in September of last year for an undisclosed amount. The following month, in October, Coinsquare became the first crypto exchange to receive a dealer registration with the Investment Industry Regulatory Organization of Canada (IIROC). Under the IIROC’s regulatory purview, Coinsquare is required to report its financial standing and maintain adequate capital for liabilities. In exchange, client accounts are protected by the Canadian Investment Protection Fund in the event of insolvency.
The Kevin O’Leary-backed WonderFi confirmed in January that it was in talks about a possible merger with Coinsquare. At that time, WonderFi clarified that the discussions were in the early stages and that there was no guarantee that an agreement would be reached.
Source: Read Full Article