By acquiring Nadex and the Small Exchange, Crypto.com intends to offer derivatives and futures products to its US customers.
Global cryptocurrency exchange Crypto.com intends to expand its presence in the United States by acquiring IG Group’s stakes in two exchange platforms.
Crypto.com announced the acquisition of the US-regulated North American Derivatives Exchange (Nadex) and the Small Exchange for an estimated $216 million. Following regulatory approval, the transaction is expected to close in the first half of 2022.
Nadex and the Small Exchange, both based in Chicago, offer retail investors derivative products, while Nadex is known for its futures offerings, allowing Crypto.com to provide traditional instruments to its U.S. customers. According to Kris Marszalek, co-founder and CEO of Crypto.com, the goal is to provide customers with a trusted, secure, and regulated platform to achieve financial independence.
According to the announcement, Nadex, which is regulated by the Commodity Futures Trading Commission, offers binary options, call spreads, and Touch Bracket (“knock-out”) contracts. The Small Exchange, on the other hand, offers smaller, more capital-efficient futures products in an effort to attract first-timers.
Travis McGhee and Donald Roberts will remain CEOs of Nadex and the Small Exchange, respectively, according to the announcement.
The acquisition adds to Crypto.com’s spending spree in order to establish a presence in the United States. The company recently made headlines when it announced a $700 million deal with AEG to purchase the naming rights to the Staples Center, home of the NBA’s Los Angeles Clippers and Los Angeles Lakers, for the next 20 years.
Crypto.com is also working to improve the efficiency of its fiat deposit and withdrawal processes. Following 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 enable dollar deposits and withdrawals for institutional clients.