WonderFi, Coinsquare and CoinSmart to Launch Canada’s Largest Regulated Crypto-Asset Trading Platform

WonderFi, Coinsquare and CoinSmart will merge their businesses to create a joint platform for trading digital assets in Canada.

PRESS RELEASE: WonderFi, Coinsquare and CoinSmart to Combine to Create Canada’s Largest Regulated Crypto Asset Trading Platform with 1.65 Million Registered Users

FULL DETAILS: https://t.co/wnETQ4YOOr pic.twitter.com/8SxdssHW2A

— WonderFi (@WonderFi) April 3, 2023

The merger is expected to expand the service’s customer base to 1.65 million users, with initial capital investments reaching $50 million.

The new ecosystem will offer the following services:

• retail and institutional trading of digital assets;
• global processing of crypto transactions;
• sports betting and video games;
• staking programs;
• trading fractional shares.

All three companies will operate under the name Coinsquare.

The board of directors unanimously approved the deal, but the final merger will take place in the second half of 2023 after shareholder votes.

The conglomerate will own the platforms Bitbuy, Coinberry, Coinsquare, CoinSmart, SmartPay, CBIX, Bitcoin.ca and the yet-to-launch BetLegend.

In October 2022, Coinsquare became the first cryptocurrency trading platform to register and gain membership in the Investment Industry Regulatory Organization of Canada.

“For many years, regulation for crypto platforms was considered a drawback, as competitors offering services without the burden of compliance costs were far more profitable. Those days are over,” said WonderFi representative Kevin O’Leary.

The documents show that the combined revenue of the three companies in 2022 was about $37 million.

Information about talks between WonderFi and Coinsquare was disclosed in early 2023. At that time, the parties had only begun discussing a potential deal.

In July 2022, WonderFi acquired the Canadian cryptocurrency exchange Coinberry.

In September, Coinsquare announced the purchase of the publicly traded cryptocurrency exchange CoinSmart. However, in January 2023 the latter объявила о расторжении сделки.