Coinsquare, the crypto startup based in Canada has acquired StellarX, an open source decentralized exchange (DEX)
Coinsquare announced regarding the acquisition on Thursday by updating that it acquired stellar wallet BlockEQ, which it is considering to rebrand as an “anchor wallet” for the StellarX platform. The details regarding the buyout cost were not revealed though.
StellarX is a decentralized, open-source and “full featured” exchange app that lets users trade in certain cryptocurrencies. It also offers trading in fiat currencies for users who own a bank account in US. StellarX is known for being a peer-to-peer marketplace. The customers dealing on the exchange retain their fund’s sole custody. It does not have an access to the funds or keys of users and is a free platform.
StellarX will be led by Megha Bambra, co-founder of BlockEQ as it moves to continue developing in accordance with its product roadmap announced by Stellar in the autumn of 2018. Also, according to the announcement, despite now being owned by Coinsquare, StellarX will continue to operate under its own brand.
Based in Bermuda, Coinbase intends to obtain license for StellarX, its wholly owned subsidiary under the relevant regulatory regime governing cryptos in the country.
Cole Diamond, Coinsquare CEO during the announcement mentioned that “We are deeply committed to ensuring that the cryptocurrency market thrives, and adoption is key.” He further added, “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.”
This acquisition comes exactly a year after Coinsquare raised equity worth $30 million led by Canaccord Genuity, a financial services firm. The company at that time mentioned the money raised will be used to fuel a global growth plan and diversification strategy focused on making the platform even more responsive to mainstream customer’s needs.”
However, since then the firm has felt the effects of the crypto bear market in recent months and as the result of that the company has wiped off 40 employees in early February.