Crypto.com Buys Nadex, Small Exchange For $216M In Cash

Crypto.com, a fast-growing cryptocurrency and financial services platform, earlier this week announced the acquisition of Nadex, the North American Derivatives Exchange, and the Small Exchange from IG Group.

The proposed acquisitions will enable Crypto.com to offer U.S.-based customers the opportunity to trade certain derivatives and futures products.

What Happened: Crypto.com is a global company building products and services around digital assets.

In adding to its core product which is a cryptocurrency platform, the firm has announced its intent to acquire IG Group’s stake in the North American Derivatives Exchange Inc (Nadex) and U.S.-based Small Exchange.

The deal is valued at $216 million in cash.

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Why It Matters: Launched last year, the Small Exchange was founded after CEO and President Donald Roberts, alongside Tom Sosnoff, founder and co-CEO of tastytrade, reflected on their experiences building thinkorswim, a brokerage acquired by TD Ameritrade in 2009 for $606 million.

Given their view that the futures market missed the boat on the retail world and general public, the Small Exchange was born offering products with standardized tick sizes, expiration cycles, and reduced notional sizes.

Nadex, on the other hand, is a retail-focused exchange providing derivative products around forex, commodities and stock indices.

Through this acquisition, Crypto.com will validate its commitment to providing market participants better access to emerging markets.

“Our goal as a platform is to offer our customers a trusted, secure, and regulated platform with world-class tools to achieve financial independence,” said Kris Marszalek, co-founder, and CEO of Crypto.com. “This proposed acquisition builds on that promise and will give our customers access to an entirely new set of financial tools to complement our current offering.”