Toronto-based cryptocurrency exchange Coinsquare is acquiring virtual currency wallet BlockEQ for $12-million.
The deal will allow Coinsquare users to access Stellar, a blockchain-based payment network that allows users to swap fiat currencies for virtual ones and send money across borders.
Stellar was created by a non-profit called the Stellar Development Foundation and bills itself as a low-cost payment network that aims to fight poverty by facilitating remittance payments to developing countries.
BlockEQ serves as a way to enter and exit the Stellar payment network; as a virtual currency wallet, it basically allows users to access their cryptocurrency holdings. It will remain its own entity and operate as a subsidiary of Coinsquare.
Coinsquare launched in 2014 as a cryptocurrency trading platform, but since then the company has been expanding into new lines of business. Earlier this year, it announced the launch of Coincapital, its portfolio and investment fund management division.
The company also has a wealth division that services high-net-worth clients, a licensing department that allows companies to launch their own trading platforms using Coinsquare’s back-end technology and a Quebec-based cryptomining business.
The BlockEQ deal marks Coinsquare’s first acquisition, but the company’s chief executive said it won’t be the last.
“It gives us an opening into the wider cryptocurrency universe, particularly at a time when Coinsquare is expanding internationally,” Cole Diamond said.
Coinsquare has previously said it plans to expand into Europe and the United States.
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