Coinsquare has announced it has acquired BlockEQ for $12 million. The move will allow Coinsquare to build out its wallet capabilities and improve its general service for current customers.
As both companies are based in Toronto, the acquisition is an easy move for Coinsquare to make. BlockEQ is the leading wallet on the Stellar Network, a decentralized protocol that aids in transfers from digital currency to traditional money. The platform is similar to Coinsquare in the sense that users can buy, sell and hold cryptocurrency with it.
“We have enormous respect for what the BlockEQ team brings to Coinsquare,” said Cole Diamond, CEO of Coinsquare. “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.”
BlockEQ also allows for the tokenization of digital assets so that users can move them on the Stellar network much faster than they could on any other network. This kind of technology will help Coinsquare onboard new customers much more quickly and look towards launching a Stable Coin, which is a cryptocurrency designed to minimize the volatility typically associated with digital currencies.
“We’re excited to be working under the Coinsquare umbrella,” said Satraj Bambra, CEO of BlockEQ. “Coinsquare was the reason we initially became interested in the cryptocurrency space, so when Cole and team approached us about coming onboard, it seemed like a natural next step.”
BlockEQ will continue to operate as its own entity and become a subsidiary of Coinsquare.
This move rounds out a year of growth for Coinsquare. After raising $30 million in February, the company launched a white-label licensing platform and then went on to form a groundbreaking relationship with BMO. According to recent quarterly results, Coinsquare is valued at $430 million.