Crypto exchange CrossTower has signed an agreement to acquire prime brokerage and digital asset exchange Bequant, according to a company release.
The terms of the deal were not disclosed.
The news comes less than a week after the exchange’s CEO Kapil Rathi told Bloomberg it was considering making further acquisitions.
CrossTower initially submitted a bid for bankrupt lender Voyager Digital but lost out to FTX.US in September. The exchange intends to submit a fresh bid in the wake of FTX filing for Chapter 11 bankruptcy protection.
Voyager filed for bankruptcy protection in July due to its over $650 million exposure to the collapsed crypto hedge fund Three Arrows Capital (3AC).
Expansion plans
CrossTower launched in May 2020 to cater to institutional investors. It received a $6 million seed funding round led by technology investor and co-founder of Mangrove Capital Gerard Lopez and is spearheaded by two executives — Rathi and Kristin Boggiano — who are veterans of traditional exchange industry.
The acquisition will enable CrossTower to expand globally and add over 600 exchange clients, according to the release.
“The market requires consolidation for the next stage of its maturity. Undoubtedly, the market will continue to grow and evolve with stronger regulation and with larger balance sheets, and it will earn back the trust of investors,” said George Zarya, founder and CEO of Bequant, in the release.
Alongside the acquisition announcement, CrossTower also introduced a new crypto ESG fund backed by the Lydian Group.
The Lydian Group is co-founded by Gerard Lopez and Greg Fishman, a technology entrepreneur. The Lydian Group emerged from stealth in June and counts Cointelegraph, CrossTower, Bequant and Coin360 within its portfolio, according to a report from Tech EU.
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Source: https://www.theblock.co/post/190638/crypto-exchange-crosstower-inks-deal-to-acquire-prime-brokerage-bequant?utm_source=rss&utm_medium=rss