Canada-based companies WonderFi Technologies Inc, Coinsquare Ltd and CoinSmart Financial Inc have announced their merger to create Canada's largest regulated crypto asset trading platform with more than 1.65 million registered users.
The newly combined company will offer Canadians a wide range of diversified products and services, including retail and institutional crypto trading, staking products, business-to-business crypto payment processing, sports betting and gaming. The newly combined company "will have more than $17 billion in transaction volume and over $600 million in assets under custody since 2017," the announcement said.
The combined company plans to diversify its revenue potential by expanding its product offerings, which are expected to appeal to a wider range of customers. Upon closing, the combined company is expected to have approximately $50 million or more in cash and investments and no outstanding debt. "Through the combination of Coinsquare and CoinSmart, we will offer a unique platform where users can trade, earn and pay with cryptocurrencies, invest in stocks, and soon place all bets on a compliant ecosystem ,” shares WonderFi President and Interim CEO Dean Scuka.
CoinSmart, a cryptocurrency exchange founded in 2018, was acquired by Coinsquare last September for an undisclosed sum. The following month, in October, Coinsquare became the first cryptocurrency exchange to gain trader registration with the Investment Industry Regulatory Organization of Canada (IIROC). Under IIROC's regulatory authority, Coinsquare is required to report its financial condition and maintain sufficient debt capital. In exchange, client accounts are protected by the Canadian Investment Protection Fund in the event of bankruptcy.
WonderFi, backed by Kevin O’Leary, confirmed in January that it was discussing a possible merger with Coinsquare. At the time, WonderFi clarified that discussions were at an early stage and there was no guarantee a deal would be reached.
