WonderFi, Coinsquare, and CoinSmart announced entering into a business combination agreement allowing them to combine their respective businesses to offer a regulated crypto assets trading platform.
According to reports, it stands as one of the largest regulated crypto asset trading platforms in the world to provide Canadians with a wide range of diversified products and services. Services to be provided include retail and institutional crypto trading, staking products, and B2B crypto payment processing. Additionally, the services will also include sports betting and gaming.
Records show that since 2017, the combined company will have over $16 billion in transactions, possessing assets under custody worth more than $600 million, and also has a registered user base consisting mainly of 1.65 million Canadians.
The WonderFi President and Interim CEO, Dean Skurka following the announcement said that the combination puts the firm in a position to be the market leader in Canada, making it “a strong balance sheet” that will pave the way for expansion and profitability.
Martin Piszel, CEO of Coinsquare said “The combination will create a safe, secure, scalable, and regulated trading platform that can compete with the unregulated global exchanges still operating in Canada.” Coinsquare’s earlier initiatives in Canada earned the firm the first Canadian crypto trading platform to register as an investment dealer and achieve membership with the now New Self-Regulatory Organization of Canada, in October 2022.
CoinSmart CEO Justin Hartzman believes that the combination will bring about a transformation in the evolution of the industry. “Modern wealth generation will be our mantra; profitability will be our corporate calling,” he said.
WonderFi Strategic Investor and former FTX spokesperson, Kevin O’Leary supported the need for a regulated crypto platform, and mentioned the combination “is a shining example for regulators and investors worldwide of what the future of the cryptocurrency industry looks like.” He added that the days of operating profitably without the burden of compliance are over.
One of the key transaction benefits presented by the combined company according to the announcement includes an Investment in Tetra, a Canadian custodian for digital assets backed by Coinbase Ventures and other well-known financial institutions. Moreover, “Coinsquare has about 43% ownership, which represents significant potential upside for the shareholders of the Combined Company.”
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