Coinsquare, one of the leading cryptocurrency exchanges in Canada, has acquired BlockEQ, a Stellar non-custodial wallet.
BlockEQ is a crypto wallet that allows users to store XLM and other tokens that run on the Stellar network.
The reason behind this acquisition was to expand Coinsquare’s services beyond just crypto trading.
According to the company’s press release, the acquisition was closed for round USD 9 million, allowing the company to start working on projects that will boost connectivity between exchange users and their digital assets.
Coinsquare is an exchange based out of Toronto Canada and currently ranks as the second largest cryptocurrency exchange in the country that offers trading pairs in Canadian Dollars.
Coinsquare also reports around $7 million in daily trading volume, making it the 73rd largest exchange in the world.
Coinsquare noted that this would not impact the day-to-day operations at BlockEQ, as the company will retain its autonomy and freedom to work on its core products, operating as a subsidiary of Coinsquare.
The CEO of Coinsquare commented on the acquisition:
“They are one of Canada’s best tech teams, and the product they’ve built is immensely valuable. That combination in partnership with Coinsquare’s technology and team means that we have the opportunity to build amazing things for the cryptocurrency community in Canada and far beyond.”
Satraj Bambra, CEO of BlockEQ, said that the company is excited to be working under the Coinsquare umbrella. He also explained that Coinsquare was the company that initially inspired them to enter the cryptocurrency space and that the partnership seemed like a natural step forward for the young company.
One of the projects that the two will be working together on is the upcoming Coinsquare stablecoin that matches the CAD.
This is just considered as the first step for Coinsquare. According to Finance Magnates, the company plans to spread its operation into the European Union by the end of the year.
Even further back, Coinsquare announced that it would be partnering with blockchain investment bank DLTa 21 to open a new cryptocurrency exchange in Japan.
The acquisition marks the first time Coinsquare has bought out a smaller company in the blockchain space and could be a precedent to more acquisitions in the future. I’ll be looking forward to see how they can improve the Stellar community as well as create their own stablecoin.