A Vancouver-based tech company, WonderFi Technologies, has concluded a deal to buy over another cryptocurrency platform licensed in Canada within a month of its buying over Bitbuy Technologies.
As a technology company that offers financial services through Decentralized Finance, WonderFi plans to keep expanding in Canada by buying Coinberry’s crypto exchange for a total sum of $38 million in a stock of WonderFi, based on what the company has on its share price.
After its conclusion, the project would have been able to consolidate its hold on two of the six registered digital assets platforms in Canada. If all regulatory bodies and relevant shareholders endorse the final purchase, WonderFi would have gained approximately 750,000 existing customers and about 160 employees in Canada.
Bitbuy, which has its headquarters in Toronto and was acquired for about $163 million in a transaction that involved stocks and cash, was completely regulated just in November 2021 following its approval by the Security Commission in Ontario. While Coinberry, on its own part, got registered at the same Security Commission in August 2021.
WonderFi’s Takeover of Coinberry
The company, Coinberry, was founded in 201 and currently has a customer base of about 220,000 users, while it has processed over $1 billion in cash transactions from then to date. The company tags itself as the most secure and the simplest way to buy and sell XRP, Bitcoin, BitCash, Ethereum, and Litecoin.
Having an employee base of 40 people, which includes developers, Coinberry was able to access the approval of regulators from the Security Commission in Ontario barely nine months ago. WonderFi is set to put on an additional $100 million of assets due to this recent deal by the end of the year.
A crypto bull and financial advisor to WnderFi, Kevin O’Leary, stated that what is really important is the compliance and access to crypto, and WonderFi has been able to swiftly set itself as a pioneer of that in Canada.
The Likelihood of More Mergers to Come
As the pressure of regulatory bodies increases on exchanges and other crypto-centered businesses, the cost of customer acquisition increases as the many platforms content for the same set of customers. The CEO and co-founder of WonderFi, Ben Samaroo, sees the likelihood of platforms merging together in the future as the crypto space in Canada expands and tries to explore more.