Crypto.com Acquires Two Exchanges From IG Group
Crypto.com has been one of the leading cryptocurrency exchanges in the world in recent months. The exchange has spent big on marketing its products and services, and it is now working on expanding the features it offers to its clients.
The exchange announced a few hours ago that it had agreed to acquire two United States-based retail-focused derivatives exchange platforms from IG Group Holdings. Crypto.com will pay $216 million in cash to acquire the derivative trading platforms.
The two platforms are North American Derivatives Exchange, Inc. (Nadex) and Small Exchange. Prior to the sale, IG Group held a 39% stake in the two digital asset trading exchanges.
Nadex, based in Chicago, is a regulated derivative exchange known for offering traders access to binary options, knock-outs, and call spreads. Meanwhile, Small Exchange offers simplified access to the futures trading market. The report added that both platforms are registered with the United States Commodities Futures Trading Commission (CFTC).
This latest development comes a few weeks after FTX, one of Crypto.com's major rivals, closed its acquisition of LedgerX, a US derivative trading platform. By acquiring the two platforms, Crypto.com could be looking to start offering cryptocurrency derivative trading services to its US users, similar to FTX.
Crypto.com has spent big in recent months. Two weeks ago, the crypto exchange paid $700 million to acquire the naming rights to the Los Angeles Staples Center. The center is now called the Crypto.com Arena, and the deal will become official on Christmas day.
The spending spree by cryptocurrency exchanges such as FTX and Crypto.com comes on the back of the broader crypto market, recording massive growth over the past few months. The total crypto market cap touched the $3 trillion mark earlier this month and is expected to grow bigger over the coming years.