Crypto.com in a bid to improve its position in the United States and to offer derivatives and futures products to its U.S. customers has announced it will acquire Nadex and the Small Exchange.
Crypto.com has announced that it will pay $216 million for the US-regulated North American Derivatives Exchange (Nadex) and the Small Exchange. 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 derivative products to retail investors, while the Small Exchange is known for its futures offerings, allowing Crypto.com to offer traditional instruments to its U.S. customers.
The purpose, according to Kris Marszalek, co-founder and CEO of Crypto.com, is to provide clients with a trusted, safe, and regulated platform to help them attain financial independence.
According to the statement, Nadex, which is regulated by the Commodity Futures Trading Commission, offers binary options, call spreads, and Touch Bracket (“knock-out”) contracts. In order to attract first-timers, the Small Exchange offers futures products that are smaller and more capital efficient.
Travis McGhee and Donald Roberts will remain as CEOs of Nadex and the Small Exchange, respectively, according to the release. The purchase adds to Crypto.com’s spending frenzy in order to establish a presence in the United States.
The corporation made headlines lately when it agreed to pay $700 million to AEG to buy the naming rights to the Staples Center, home of the NBA’s Los Angeles Clippers and Los Angeles Lakers, for 20 years.
Crypto.com is also aiming to make its fiat deposit and withdrawal processes more efficient. The exchange has teamed with state-chartered Silvergate Bank to offer dollar deposits and withdrawals for its institutional clients, following its integration with Circle API to enable U.S. dollar bank transfers to Circle-based USD Coin (USDC) wallets.
