Crypto.com, a global crypto exchange, is purchasing IG Group’s holdings in two exchange platforms in order to increase its footing in the United States.
The US-regulated North American Derivatives Exchange (Nadex) and the Small Exchange are being purchased by Crypto.com for an estimated $216 million. Following regulatory clearance, the transaction should conclude in the first part of 2022.
Nadex and the Small Exchange, both situated in Chicago, provide derivative products to individual investors. While the Small Exchange is recognisable for its futures offerings, allowing Crypto.com to offer conventional instruments to its US consumers. The purpose, according to Kris Marszalek, co-founder and CEO of Crypto.com, is to provide clients with a reliable, safe, and regulated platform through which they may attain financial independence.
The Small Exchange offers smaller, more capital-efficient futures contracts to attract first timers
According to the statement, Nadex provides binary options, call spreads, and Touch Bracket (“knock-out”) contracts. All of which regulated by the Commodity Futures Trading Commission. In order to attract first-timers, the Small Exchange offers smaller, more capital-efficient futures contracts.
Travis McGhee and Donald Roberts, the CEOs of Nadex and the Small Exchange, respectively, will remain in their positions, according to the release.
The purchase is part of Crypto.com’s plan to develop a foothold in the US. The company recently made headlines when it announced a $700 million deal with AEG. In order to buy the naming rights to the Staples Center. Which is home to the NBA’s Los Angeles Clippers and Los Angeles Lakers, for 20 years.
Crypto.com is also working to make its fiat deposit and withdrawal procedures more efficient. Following its integration with Circle API to enable U.S. dollar bank transfers to Circle-based USD Coin (USDC) wallets. The exchange has partnered up with state-chartered Silvergate Bank to facilitate dollar deposits and withdrawals for its institutional clients.