- WonderFi Technologies Inc. (TSX:WNDR), Coinsquare Ltd., and CoinSmart Financial Inc. (NEO:SMRT) have signed a business combination agreement to create a new trading platform
- The merger will create Canada’s largest regulated cryptocurrency exchange, called “Coinsquare Capital Markets”
- The combined company will have transacted more than $17 billion since 2017 and have over $600 million in assets under custody, with a registered user base of 1.65 million Canadians
- WonderFi Technologies Inc. (WNDR) opened trading at $0.22 and has grown 46 per cent year-to-date
- CoinSmart Financial Inc. (SMRT) opened trading at $0.24 and has risen 75 per cent year-to-date
WonderFi Technologies Inc. (TSX:WNDR), Coinsquare Ltd., and CoinSmart Financial Inc. (NEO:SMRT) have signed a business combination agreement to create a new trading platform.
The merger will create Canada’s largest regulated cryptocurrency exchange, called “Coinsquare Capital Markets.”
Under the deal, WonderFi will issue 269,727,080 common shares to Coinsquare and 119,181,733 common shares to CoinSmart. WonderFi will have a 38 per cent stake in the new company once the deal is complete, while Coinsquare will control 43 per cent and CoinSmart will own a 19 per cent share.
The combined company will have transacted more than $17 billion since 2017 and have over $600 million in assets under custody, with a registered user base in excess of 1.65 million Canadians.
Its revenue growth strategy is expected to involve expanding its product offerings to diversify its revenue potential from its retail, institutional, and B2B clients in its ecosystem, including:
- Retail and institutional crypto trading
- Global crypto payment processing
- iGaming and sports betting
- Staking and yield products
- Fractional stock trading
This planned diversification of product offerings, within one Canadian owned and operated ecosystem, is intended to appeal to a wider range of customers and provide them with an all-in-one solution.
WonderFi’s President and Interim CEO, Dean Skurka will serve on the board of the combined company. In a media release on this news, he said that at the heart of all great innovation is a consumer that is driven to adopt new technology to improve their personal or professional lives.
“What we will deliver with the combination of both Coinsquare and CoinSmart is a unique platform where users will trade, earn and pay with crypto, invest in equities, and soon, place wagers all in one compliant ecosystem.”
In October 2022, Coinsquare became the first Canadian crypto platform to be registered with the Investment Industry Regulatory Organization (IIROC), now the New Self-Regulatory Organization of Canada.
Meanwhile, CoinSmart’s growing European OTC division provides an opportunity for the combined company to expand its presence outside of Canada.
WonderFi (WNDR) is a technology company with the mission of creating unified access to digital assets through centralized and decentralized platforms.
CoinSmart (SMRT) is a digital asset trading platform dedicated to providing customers with an intuitive way for buying and selling digital assets, like Bitcoin and Ethereum, combined with the seamless ability to on-ramp and off-ramp fiat.
WonderFi Technologies Inc. (WNDR) opened trading at $0.22 and has grown 46 per cent year-to-date.
CoinSmart Financial Inc. (SMRT) opened trading at $0.24 and has risen 75 per cent year-to-date.
