OANDA acquires majority stake in crypto exchange Coinpass
FX brokerage firm OANDA has acquired a majority stake in British cryptocurrency exchange Coinpass, which holds approval to operate a registered cryptoassets firm with the UK Financial Conduct Authority.
Coinpass offers a platform for retail investors, professional traders, and businesses to invest and trade in cryptocurrencies. They provide access to various products, including fiat/crypto, crypto/crypto, and stablecoin pairs through their in-house technology solutions.
This acquisition will complement OANDA’s existing portfolio, which includes offering a broad range of CFD instruments like indices, forex, commodities, metals, and bonds. By teaming up with Coinpass, OANDA bolsters its cryptocurrency trading offering in the UK market, providing retail customers with a regulated way to tap into the digital economy.
Interestingly, the acquisition positions OANDA in the FCA-regulated crypto exchange space, as Coinpass holds this distinction. This move aligns well with the growing trend of increased cryptocurrency ownership in the UK, which more than doubled in the previous year, as revealed by the FCA’s consumer survey conducted in June 2023.
“By adding Coinpass’ regulated crypto trading proposition to OANDA’s existing multi-assets offering, we will significantly expand our footprint and widen our appeal to a growing base of retail investors in the UK.” said Gavin Bambury, Chief Executive Officer of OANDA.
He added, “The acquisition also signals the start of an exciting new phase of growth for OANDA, creating the opportunity for a truly global B2B reach. A crypto-native, Coinpass will provide OANDA with the technology backbone and trusted experience in the regulated crypto markets we need in order to offer clients globally a fast and secure route to the digital economy.”
“The acquisition of Coinpass by OANDA was born out of an alignment of vision and shared values for offering top-quality trading products to UK users. OANDA’s market experience in trading as well as their extensive product offering made working with them as a long-term equity investor vital to Coinpass’s continued growth.” said Jeff Hancock, Chief Executive Officer of coinpass.com.
Coinpass was set up five years ago to cater to the increasing demand for access to digital assets in the UK. Since its inception in 2018, the firm has been focused on providing a digital layer that enables smooth transactions between traditional banking and the world of cryptocurrencies.
This integration has been at the core of Coinpass’s mission. Previously, UK traders were exposed to risks like money laundering, money losses, and poor customer service when dealing with offshore and unregistered exchanges. Coinpass aims to eliminate these concerns by providing a regulated and secure platform that bridges the gap between banking and the crypto landscape.
