• Canadian crypto exchanges WonderFi, Coinsquare and CoinSmart have announced plans to merge, creating one of the world’s largest crypto trading platforms.
• The merged company will have 1.65 million users and more than $600 million in assets under custody.
• Kevin O’Leary is a strategic investor in WonderFi, with its shares having surged 43.75% following the announcement.
Canadian Crypto Exchanges Merge
A trio of Canadian crypto exchanges – WonderFi, Coinsquare and CoinSmart – are confirming plans to merge, creating what would be one of the world’s largest crypto trading platforms. The combined company will have 1.65 million users and more than $600 million in assets under custody. Shares of Kevin O’Leary-backed WonderFi have surged nearly 50% following the announcement.
Benefits of Merger
The firms believe they “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,” according to WonderFi President Dean Skurka. The merger could also provide regulatory clarity for Canada’s digital asset industry in ways that may not be available in other countries like the U.S., where Binance and Coinbase are facing scrutiny from regulators.
The merger follows separate plans among the three firms over recent months; In January it was reported that WonderFi and Coinsquare were in advanced talks to combine, days after Coinsquare terminated an agreement with CoinSmart.
Kevin O’Leary is a strategic investor in WonderFi and has discussed how Canada offers regulatory clarity compared with other countries like the U.S.. His shares have surged 43.75% following Monday’s announcement confirming plans for all three exchanges to merge into one entity
The planned merger between these three Canadian crypto exchanges will create one of the world’s largest crypto trading platforms as well as provide potential benefits such as increased regulatory clarity and improved financial performance through consolidation of resources. Shares of Kevin O’Leary-backed WonderFi have already surged significantly following Monday’s announcement confirming these plans, indicating positive sentiment amongst investors about this upcoming venture