United States-based financial company Robinhood is buying WonderFi, the Canadian crypto operator of Bitbuy and Coinsquare.
According to preliminary information published by the media, the mentioned deal will cost C$250 million (US$170 million) in cash.
The Bitbuy and Coinsquare platforms jointly hold assets worth over C$2.1 billion under custody.
Robinhood claims that the deal will help it expand into one of the fastest-growing cryptocurrency markets in the world and build a global financial ecosystem.
The WonderFi staff will join more than 140 Robinhood employees who are already working in Canada. Last year, the US company established a base in Toronto as a hub for engineering infrastructure.
Johann Kerbrat, SVP and GM, Robinhood Crypto, stated that WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood’s mission in Canada.
The deal is expected to be fully completed in the second half of the current year. Robinhood will pay C$0.36 per share in cash to acquire all outstanding securities of WonderFi.
Robinhood has established itself as one of the most popular trading platforms for retail investors. The expansion of its offering through specialized cryptocurrency services reflects the high degree of commitment of traditional financial players to fully integrate digital assets into their product range. The acquisition of WonderFi also demonstrates the desire of large companies to consolidate the market. Moreover, the deal reflects a movement towards greater technological synergy and innovation.
As we have reported earlier, Robinhood Plans to Launch Crypto Products in Singapore.
