The three well-known Canadian crypto firms have revealed plans to merge together to establish the world’s leading crypto trading platform to serve comprehensive services.
According to the press release, WonderFi Technologies Inc., Canadian crypto exchange Coinsquare, and CoinSmart Financial Inc. have joined hands under a business combination agreement to develop the largest Canada-based regulated cryptocurrency trading platform in the world.
The statement reveals that the three combined companies have a registered Canadian user base of $1.65 million and hold over $600 million in digital assets under custody. Additionally, the company “will have transacted over $17 billion since 2017.”
The focus of these newly integrated firms is to provide a broad spectrum of diverse products and services to Canadians. Retail and institutional cryptocurrency trading, staking products, business-to-business (B2B) crypto payment processing, sports gambling and gaming all fall under the new company’s aims.
Coinsquare head Martin Piezel stressed that this latest merged firm will bring more security, scalability and regulation to the trading platform, giving it a chance to compete with unregulated crypto exchanges around the world that still exist in Canada. He added that “the combination of these 3 leading Canadian brands provides a path to building a profitable, first-of-its-kind multi-asset class platform in Canada.”
According to the statement, WonderFi President Dean Skurka expressed that “With this combination, we have the scale to be the market leader in Canada, a strong balance sheet that will allow for expansion, and a clear path to profitability.”
WonderFi shareholders will own 38% of the Combined Company, Coinsquare shareholders 43%, and CoinSmart shareholders 19%, once the transaction is completed post the shareholder meeting of each party in the second quarter of 2023.
Following the merger announcement, Kevin O’Leary-backed crypto firm WonderFi stock price soared 25% on April 3 to a reported 20 Canadian cents.
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