In the midst of the ongoing crypto winter, consolidation within the cryptocurrency industry continues as Bitwave, a cryptocurrency company, acquires the payments and accounting platform Gilded, a direct rival. This acquisition is set to bolster Bitwave's enterprise solutions, which encompass various aspects such as crypto payments, invoicing functionalities, tax tracking, and accounting tools. Ken Gaulter, Gilded's Chief Technology Officer, is also slated to join Bitwave's engineering team as part of the integration. This move comes on the heels of Bitwave's earlier acquisition of Multisig Media.
Pat White, CEO and co-founder of Bitwave, highlighted the company's belief that digital asset payments offer faster and more cost-effective alternatives to traditional payment methods. He sees this transformation as a game-changer for businesses operating in today's highly interconnected economy. The financial details of the acquisition have not been disclosed. Gilded, founded in 2018, was established by a group of developers and accountants to assist companies in seamlessly integrating cryptocurrency solutions into their financial reporting and accounting procedures.
With more than 130 enterprise customers spanning various sectors, including crypto startups, non-fungible token markets, decentralized autonomous organizations, miners, and accounting firms, Gilded has made a significant impact in its niche. Despite the acquisition, Gilded's existing customer base will continue to access its current suite of products. Concurrently, Bitwave's platform will be integrated into their offerings. Bitwave, also founded in 2018, specializes in crypto accounting and compliance services. The company recently secured a $15 million Series A funding round in December 2022 to expand its crypto solutions, particularly to address the complex accounting needs of large enterprises, with backing from Hack VC and Blockchain Capital. Bitwave has also formed a partnership with Deloitte, one of the Big Four accounting firms,to provide enterprise tools that facilitate the integration of blockchain data into enterprise resource planning systems.
This acquisition occurred shortly after US regulators introduced new rules governing the accounting of digital assets. On September 6, the US Financial Accounting Standards Board approved guidance on how companies should report the fair value of cryptocurrencies on their balance sheets. According to Pat White, these new regulations bring more transparency to both the taxation and accounting of digital assets. Additionally, the IRS recently provided guidance on how to tax staking rewards, contributing to a clearer tax landscape for those involved in the digital asset space. As rules become more transparent, regulators are expected to tighten their oversight of digital asset trading activities.
