Archax, the UK-based, FCA-regulated exchange, broker and custodian for digital assets, today announced it has agreed to acquire the Spanish broker King & Shaxson Capital Markets, Sociedad de Valores, S.A. (KSCM), to be renamed Archax Markets Europe, S.A.
The completion of the strategic acquisition is currently subject to customary regulatory approvals in Spain.
This deal will allow Archax to extend its brokerage, Multi-Lateral Trading Facility (MTF) and custody capabilities into the EU region, as well as add crypto derivatives to its permissions.
These capabilities will now aim to position the entity well for Markets in Crypto Asset Regulation (MiCAR).
KSCM was established in Madrid in 2019, and is said to be servicing pan-European institutional clients.
This transaction will see KSCM become a “wholly owned” subsidiary of Archax Group and extend its foothold in the EU region.
Graham Rodford, CEO and co-founder of Archax, commented that the Archax strategy has been to expand its regulatory footprint, with the EU region being of “prime importance for us, post-Brexit.”
Rodford added that this acquisition expands and enhances their access to permissions within the EU region, “building on those we hold with the FCA in the UK. It also broadens our regulated capabilities—particularly in distribution and crypto derivatives—positioning us well for the upcoming implementation of MiCAR in the EU.”
Cuatrecasas (led by partner Fernando Mínguez, with senior associate Carlota Tojo and associates Julián Ruan and Rosa Coloma) provided “legal assistance to Archax on the transaction, and Ashurst Spain (partner Pedro Ester and associate María López Garayalde) advised K&S.”
As covered, Archax is the digital securities exchange regulated by the FCA in London. Intended for institutions, Archax has its FCA brokerage, custody and crypto permissions.
Founded by professionals from traditional capital markets and backed by an accomplished advisory board, Archax explains that it offers a bridge between the blockchain world and the investment space.
The Archax team is used to working in regulated markets and claims that it has an understanding of the blockchain landscape and tokenization – as well as a vision of how to “evolve them and open up digital assets to institutions in a transparent manner.”
Archax’s solutions are reportedly built by using “high-performance” infrastructure, which are said to be integrated into the existing institutional trading workflow.