Crypto.com, which claims to be one of the fastest-growing cryptocurrency and financial services platforms, has announced that it has executed a sale and purchase agreement to acquire the North American Derivatives Exchange (Nadex) — a US-headquartered retail-focused, regulated online exchange and clearinghouse offering derivative products on heavily traded markets — and the Small Exchange — a futures exchange “offering smaller, simpler products also aimed toward retail customers.”
As mentioned in an update shared with CI, the proposed acquisition of Nadex and the Small Exchange will “enable Crypto.com to provide its U.S.-based customers with the opportunity to trade certain derivatives and futures products.”
Kris Marszalek, co-founder and CEO of Crypto.com, stated:
“Our goal as a platform is to offer our customers a trusted, secure, and regulated platform with world-class tools to achieve financial independence. This proposed acquisition builds on that promise and will give our customers access to an entirely new set of financial tools to complement our current offering.”
Nadex is part of the North American division of IG Group (LON: IGG), a FTSE 250 global financial services company with a market cap of around $4.3 billion.
Based in Chicago, Ill., Nadex is the U.S. exchange for binary options, call spreads, and Touch Bracket (“knock-out”) contracts, providing innovative ways to participate in the markets. Nadex is registered “with, and subject to regulation by the Commodity Futures Trading Commission (CFTC). Member funds are held in segregated accounts in major U.S. banks.”
The Small Exchange is a retail trader-centric futures exchange, offering futures products that are “smaller, more capital efficient, simple to use, and easy to understand.”
The Chicago-headquartered firm “facilitates the trading of exchange-created proprietary products for a range of market participants including market-makers/liquidity providers, Introducing Brokers (IBs), Futures Commission Merchants (FCMs), proprietary trading firms, and hedge funds.”
Travis McGhee and Donald Roberts will “continue in their roles as CEOs of Nadex and the Small Exchange respectively, post close,” the update confirmed.
June Felix, Global CEO, IG Group, remarked:
“This is a fantastic deal that is beneficial to all parties. Nadex and the Small Exchange are strong innovative businesses, and we are pleased that Crypto.com has recognized their potential. This will be an exciting time for clients and all those involved in the businesses.”
Crypto.com expects to “complete the acquisition of Nadex and the Small Exchange in the first half of 2022, pending regulatory review.” Both firms will “fold under the Crypto.com brand,” the announcement revealed.