In an effort to attract the growing number of cryptocurrency traders in the UK, which has doubled over the past year, OANDA Global Corporation has decided to acquire a majority stake in the crypto asset firm Coinpass Limited.
OANDA Acquires Coinpass
Founded to cater to the demand for prompt and secured digital asset access in the UK, Coinpass swiftly garnered attention from UK traders and investors. More significantly, the company is licensed by the UK's Financial Conduct Authority (FCA).
The platform is not restricted to retail investors. It extends its offerings to professional traders and businesses, allowing them to invest in and trade cryptocurrencies . Coinpass's trading technology solutions include fiat-to-crypto, crypto-to-crypto and stablecoin-to-crypto products.
This collaboration is expected to synergize with OANDA's current offering of CFD instruments, spanning indices, forex, commodities, metals, and bonds. The merger sets the stage for OANDA to make significant inroads into the UK's cryptocurrency trading market using the registered crypto exchange business of Coinpass.
As highlighted by OANDA, Coinpass is now one of the few cryptocurrency exchanges to obtain FCA registration. Moreover, according to a survey conducted by the UK regulator, the number of digital asset holders in the UK has doubled over the past year. The acquisition will thus allow the company to take advantage of the growing potential of the UK cryptocurrency market.
"By adding Coinpass' regulated crypto trading proposition to OANDA's existing multi-assets offering, we will significantly expand our footprint and widen our appeal to a growing base of retail investors in the UK." Gavin Bambury, the Chief Executive Officer of OANDA, commented.
Bambury further stated that the acquisition marks a dynamic growth phase for OANDA, enhancing its global B2B potential. With Coinpass's expertise in regulated crypto markets, OANDA can now offer clients worldwide access to the digital realm.
“The acquisition of Coinpass by OANDA was born out of an alignment of vision and shared values for offering top-quality trading products to UK users," Jeff Hancock, the Chief Executive Officer of Coinpass, commented.
Important Changes to OANDA’s Offering
For OANDA, the latest acquisition is not the first encounter with cryptocurrencies. In October 2022, the platform added the option of trading digital assets for its customers in the United States after partnering with Paxos, a regulated blockchain infrastructure company.
“The decision to add crypto access to OANDA’s popular forex trading platform was made in response to the needs of active traders—giving them the ability to trade according to their personal style is key,” Jessica Beckstead, the CEO of OANDA for North America, explained.
In the meantime, the company announced significant changes in Europe. At the beginning of the year, it left Malta and announced that its European operations would be overseen from Poland. The final move occurred in March and was indirectly related to the acquisition of the Polish brokerage house OANDA TMS Brokers SA in 2021, which has its registered office in Warsaw.
