Coinsquare, one of Canada’s biggest digital currency exchanges, on Thursday said it has purchased BlockEQ, a private Stellar wallet that also serves as a decentralized network for cryptocurrency P2P payments and trading.
This acquisition is the first instance in which Coinsquare, aka Canada’s Coinbase, has bought out a smaller company in the blockchain space.
Currently, Coinsquare’s customers rely on the company to act as a custodian. By contrast, a decentralized wallet lets them hold the cryptocurrency directly using their own private keys. The acquisition also gives Coinsquare a wallet brand of its own and provides a security-audited system to transact digital assets.
Terms of Deal Disclosed
The acquisition was closed for CAD $12 million ($9 million), but the company did reveal that BlockEQ will retain the autonomy and freedom to develop the core product. It will also benefit from future integration possibilities and the increased synergy from Coinsquare, including the broad user base and its upcoming Stable Coin.
2020 Global Market Outlook: How the “Known Unknowns” Can Affect CurrenciesGo to article >>
The Toronto-based exchange claims $5 billion per year of cryptocurrency trades and over 100,000 customers. The company raised $23.63 million in a funding round earlier this year and is targeting a $120 million IPO to help finance an overseas expansion.
Coinsquare has recently announced the next phase of its bid to become a global crypto exchange, opening for business in the European Union in Q4 2018.
The trading venue is also making inroads into Asia as it plans to open a new cryptocurrency exchange in Japan. The move, which involves a partnership with blockchain investment bank DLTa21, comes as Japanese regulators investigate such exchanges in the country after hackers stole millions in some of the world’s biggest cyber-heists.
Commenting on the news Cole Diamond, CEO of Coinsquare, said: “They are one of Canada’s best tech teams, and the product they’ve built is immensely valuable. That combination in partnership with Coinsquare’s technology and team means that we have the opportunity to build amazing things for the cryptocurrency community in Canada and far beyond.”