Canadian companies WonderFi Technologies Inc, Coinsquare Ltd and CoinSmart Financial Inc have Announced their merger to create the largest regulated crypto asset trading platform in Canada with over 1.65 million registered users.
The newly merged company will offer Canadians a wide range of diversified products and services, including retail and institutional cryptocurrency trading, staking products, business-to-business crypto payment processing, sports betting, and gaming. The newly merged company “will have completed more than $17 billion in transactions since 2017 and will have more than $600 million in assets under custody,” the announcement said.
PRESS RELEASE: WonderFi, Coinsquare and CoinSmart to Combine to Create Canada’s Largest Regulated Crypto Trading Platform with 1.65 Million Registered Users
ALL THE DETAILS: https://t.co/wnETQ4YOOr pic.twitter.com/8SxdssHW2A
—Wonder Fi (@WonderFi) April 3, 2023
The combined company plans to diversify its revenue potential by expanding its product offerings, which are expected to appeal to a broader range of customers. Upon completion of the merger, the combined company is expected to have approximately $50 million or more in cash and investments and will have no outstanding debt.
“What we will offer with the combination of Coinsquare and CoinSmart is a single platform where users will trade, earn, and pay cryptocurrency, invest in stocks, and soon place bets, all in one compatible ecosystem,” said Dean, president and Interim CEO of WonderFi. Skurka shared.
Related: New Canadian rules for cryptocurrency trading platforms leave little room for stablecoins
CoinSmart, a cryptocurrency exchange founded in 2018, was acquired by Coinsquare in September of last year for an undisclosed amount. The following month, in October, Coinsquare became the first cryptocurrency exchange to receive a dealer registration with the Investment Industry Regulatory Organization of Canada (IIROC). Under IIROC regulatory scope, Coinsquare must disclose its financial condition and maintain adequate capital for liabilities. In return, client accounts are protected by the Canadian Investment Protection Fund in the event of insolvency.
WonderFi, backed by Kevin O’Leary, confirmed in January that it was in talks about a possible merger with Coinsquare. At the time, WonderFi clarified that the discussions were in the early stages and that there was no guarantee that a deal would be reached.
