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Coinsquare broadened its horizons yesterday via an acquisition of the decentralised exchange StellarX for an undisclosed figure.
The largest Canadian cryptocurrency exchange announced the news of the acquisition on Thursday, outlining their intention to position the Bermuda-based Stellar within their organisation as an “anchor wallet”. Unfazed by the crypto winter, Coinsquare seems intent on growing and expanding and pushing the potential of the cryptocurrency market as far as it can go. In the press released that was shared by Coinsquare announcing the dea their CEO, Cole Diamond explained, “We are deeply committed to ensuring that the cryptocurrency market thrives, and adoption is key. Stellar is the fastest payment network in the world and we see enormous potential to create industry-leading services on StellarX to further broader adoption”.
StellarX has impressed many since its formation with its innovative and unique service. It offers users the ability to trade with fiat, alongside cryptocurrency, thus allowing users to fund their account with their own bank account, which is unconventional for a decentralised exchange. Transactions on the exchange are also free, with it having no access to users’ funds, giving the user sole custody and allowing for peer-to-peer transactions. Ultimately, it is one of the most user-friendly exchanges on the market and a very good product through and through. The only issue is scaling the operation up, which is where Coinsquare comes in.
Coinsquare is hoped to allow for the exchange to fulfil its potential by providing Stellar X the experience it needs to scale up. It is expected that StellarX will seek regulatory approval to operate and expand its service under Coinsquare’s compliance. This follows on from StellarX recently announcing a series of future improvements they hoped to instal, and this deal is hoped to make that transition to a new and improved service with the original plan unperturbed.
It comes at an interesting time for Coinsqaure too being the second acquisition in just a few months following a $12 million acquisition of a private Stellar wallet BlockEQ in the Autumn. It has been announced that BlockEQ’s co-founder, Megha Bambra will be the one to spearhead the developments of StellarX and follow the “roadmap” outlined in the earlier announcement back at the end of 2018. Ultimately, it seems that the acquisition will see the plans of StellarX come to fruition just with more resources and experienced management at the helm, which can only spell good things for the future of the product. There is no rebrand expected though, and StellerX, which is a native of the steller protocol, will, for the most part, operate in a near identical fashion to that is has done for some time, just via the guidance and of Coinsquare as the parent company.
It also follows on for a mix of fortunes for Coinsquare over the past 12 months. A year ago, they raised $30 million in equity financing led by financial services firm Canaccord Genuity, only to suffer the a turn in fortunes and lay off 40 employees last month. Despite this, it appears to be a match made in heaven from our position and look forward to seeing StellerX thrive.